ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An inheritance from someone who has died
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Discretionary income or a gift of money
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Capital gains from a sale of stock
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Capital losses from the sale of stock
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Detailed explanation-1: -Realized capital losses from stocks can be used to reduce your tax bill. You can use capital losses to offset capital gains during a taxable year, allowing you to remove some income from your tax return. To deduct your stock market losses, you have to fill out Form 8949 and Schedule D for your tax return.
Detailed explanation-2: -A capital loss-when a security is sold for less than the purchase price-can be used to reduce the tax burden of future capital gains. There are three types of capital losses-realized losses, unrealized losses, and recognizable losses.
Detailed explanation-3: -A capital loss is a loss on the sale of a capital asset such as a stock, bond, mutual fund or investment real estate. As with capital gains, capital losses are divided by the calendar into short-and long-term losses.
Detailed explanation-4: -Short-term capital loss can be adjusted against long-term capital gains as well as short-term capital gains. Such loss can be carried forward for eight years immediately succeeding the year in which the loss is incurred.