About This Chapter
Capital Gains & Losses - Chapter Summary
This series of short and engaging lessons can help you improve your understanding of capital gains and losses. The lessons are taught by expert instructors who break down topics like 'held for sale' assets and substitutes for ordinary income. You can work through the chapter at your own pace using any Internet-connected device. Take the included lesson quizzes and chapter exam to make sure you fully understand these tax terms and concepts. When you're finished with the chapter, you should be able to:
- Explain the statutory framework for capital gains and losses
- Evaluate 'held for sale' assets as they relate to capital gains and losses
- Assess examples of ordinary income substitutes
1. Capital Gains & Losses: Definition & Statutory Framework
If money is made (or lost) on an investment, the IRS would like to know. This lesson will define capital gains and losses and explain the tax framework for the different types of gains and losses.
2. Substitutes for Ordinary Income: Definition & Examples
After reading this lesson, you'll understand why the IRS finds it important to classify certain monetary gains as a substitute for ordinary income. You'll also learn about some court cases that involve this substitute for ordinary income.
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Other chapters within the Accounting 307: Federal Income Taxes course