An individual taxpayer received a valuable painting from his uncle, a famous artist who painted it. After the taxpayer held the painting for two years, he sold it for a $400,000 gain. The gain is a long-term capital gain. True False

An individual taxpayer received a valuable painting from his uncle, a famous artist who painted it. After the taxpayer held the painting for two years, he sold it for a $400,000 gain. The gain is a long-term capital gain. True False

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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False

Definition Definition Increase in the value of a capital asset and the amount that is realized when the asset is sold off. A capital gain may be short-term or long-term depending on the tenure for which the asset is held.

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