Match each statement with the correct term below.
-Capital asset
A)Limited to $3,000 annually for individuals.
B)When an asset is disposed of for less than its basis.
C)An excess of business deductions over business income.
D)A trade or business in which the taxpayer is not a material participant.
E)A loss that results from some sudden, unexpected, or unusual event.
F)Any asset that is not a receivable, inventory, or depreciable or real property used in a trade or business.

Question

Quizplus · Accepted Answer

Capital assets are defined as any asset that is not a receivable, inventory, or depreciable or real property used in a trade or business. This includes assets like stocks, bonds, and personal property.

Match Each Statement with the Correct Term Below