1. Why does the tax law provide preferential rates on certain capital gains?
2. What is the deciding factor in determining whether a capital gain is a short- term or long-term capital gain?
3. What methods may taxpayers use to determine the adjusted basis of stock they have sold?
4. What tax rate applies to net short-term capital gains?
5. What limitations are placed on the deductibility of capital losses for individual taxpayers?
6. What happens to capital losses that are not deductible in the current year?
7. Are all long-term capital gains taxable at the same maximum rate? If not, what rates may apply to long-term capital gains?
8. Why does the tax law allow a taxpayer to defer gains accrued on a capital asset until the taxpayer actually sells the asset?