Question

Business Tax

What can an individual do if the end result is an overall capital loss?

Answer 1

solution:

Business Tax : A corporate tax is a levy placed on the profit of a firm to raise taxes. After operating earnings are calculated by deducting expenses, including the cost of goods sold (COGS) and depreciation from revenues, enacted tax rates are applied to generate a legal obligation the business owes the government. capital loss: A capital loss is the loss incurred when acapital asset, such as an investment or real estate, decreases in value. This loss is not realized until the asset is sold for a price that is lower than the original purchase price. What can an individual do if the end result is an overall ? Overall Capital Losses. When your short-term gains or losses plus your long-term gains orlosses result in a loss when added together, you have an overall loss that can be deducted against your other income. ... This is the amount that can be used to reduce other income on your tax return...but not all at once.

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