[tex] \\ \\ \\ \\ [/tex] ★ Define the term capital assets? Distinguish between short term and long term assets and give procedure to calculate capital gains?? [tex] \\ \\ \\ [/tex]
Capital assets are long-term assets held for investment purposes.
Short-term assets are held for less than a year, while long-term assets are held for over a year. Capital gains are profits from the sale of capital assets. To calculate capital gains, subtract the purchase price (including acquisition costs) from the selling price. If the result is positive, it's a capital gain; if negative, it's a capital loss. For long-term assets held over a year, preferential tax rates may apply. Always consult tax regulations for accurate calculations.
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Capital assets are long-term assets held for investment purposes.
Short-term assets are held for less than a year, while long-term assets are held for over a year. Capital gains are profits from the sale of capital assets. To calculate capital gains, subtract the purchase price (including acquisition costs) from the selling price. If the result is positive, it's a capital gain; if negative, it's a capital loss. For long-term assets held over a year, preferential tax rates may apply. Always consult tax regulations for accurate calculations.
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