Acc 411 Unit 6 Discussion Question 2

Acc 411 Unit 6 Discussion Question 2

Instructions: Must be a 250 words response; 1-2 references

Net capital gains are taxed at special rates (see the table as a reference). How may these rates influence the behavior or tax planning of individuals who may have capital assets to sell?

20181127040656net_capital_gains (1)

Solution Preview

The Impact of Taxing Net Capital Gain with Special Rates.

Capital gain tax is a form of tax incurred after the sale of a non-inventory asset whose cost is lower than its value. Nonetheless, it remains imperative to note that taxation has a direct impact on consumer behavior especially with regards to how they spend and save. Additionally, the alteration of the tax on capital gains affects whether sellers will dispose of their assets or not.

(345 words)