James is a resident of the U.S. and has accrued capital gains on an asset. If James sells the asset, _____.

Question

Quizplus · Accepted Answer

When James sells the asset, he will realize the gain and owe capital gains tax. This is because the United States taxes its residents on worldwide income, including capital gains. The amount of capital gains tax owed will depend on various factors such as the holding period of the asset, the tax bracket of the taxpayer, and any deductions or credits that may apply.

James Is a Resident of the U