Which of the following is not true about capital assets?
A)Real property used in a trade or business is not a capital asset.
B)Capital losses may be carried back for 3 years to offset capital gains in those years.
C)Net long-term capital gains are granted preferential tax treatment.
D)Individual taxpayers may deduct net capital losses of up to $3,000 per year.
E)Shares of stock held for investment are capital assets.

Question

Quizplus · Accepted Answer

Capital losses cannot be carried back to offset capital gains in previous years; they can only be carried forward to offset future capital gains or deducted up to a certain limit against ordinary income in the current year.

Which of the Following Is Not True About Capital Assets