Dealings in Properties

Tax basis means cost or depreciated cost of the property.

• True

• False

The loss on the sale of bonds by banks is an ordinary loss.

• True

• False

The capital gain from the sale of domestic bonds and foreign stocks are subject to regular income tax.

• True

• False

Capital loss is deductible to the extent of capital gains.

• True

• False

The sale of foreclosed land by a bank is subject to regular income tax.

• True

• False

Ordinary loss and capital loss are items of deduction from gross income.

• True

• False

The loss on the sale of stocks by a trust company is an ordinary loss.

• True

• False

An ordinary gain is an item of gross income while a net capital gain is an exclusion from gross income.

• True

• False

The holding period rule is relevant to individuals and corporate taxpayers.

• True

• False

The gain is said to be short-term if the sale of the asset is made in less than one year from its acquisition.

• True

• False