Can individuals offset short-term capital losses on shares against other capital gains? Option: Yes, they can be offset against both short-term and long-term capital gains., No, losses on shares cannot be offset against any other gains., Only if the losses exceed a certain threshold., Yes, but only against short-term capital gains.

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Can individuals offset short-term capital losses on shares against other capital gains?

Yes, they can be offset against both short-term and long-term capital gains.

No, losses on shares cannot be offset against any other gains.

Only if the losses exceed a certain threshold.

Yes, but only against short-term capital gains.

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What is a common strategy to reduce capital gains tax burden?

Selling assets within a year

Borrowing money to offset capital gains

Holding assets for a longer period

Investing in high-risk assets

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How are long-term and short-term capital gains differentiated?

By the investor's tax bracket

By the type of asset sold

By the amount of profit generated

By the holding period of the asset

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How does the holding period affect capital gains?

Holding periods determine if gains are long-term or short-term

Short-term gains are tax-exempt

Holding periods only matter for real estate investments

Longer holding periods always result in higher capital gains

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What is the determining factor for classifying capital gains on shares as short-term or long-term?

"The type of company issuing the shares"

"The overall market performance"

"The volume of shares traded"

"The holding period of the shares"

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What is the primary factor that determines whether a capital gain is considered long-term or short-term?

The type of asset

The holding period of the asset

The investor's tax bracket

The amount of profit