Assignment Type:Individual Project Deliverable
Length:150 word minimum Points Possible:125
Due...

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Assignment Type:Individual Project Deliverable 
Length:150 word minimum Points Possible:125 
 Due Date:5/19/2013 11:59:59 PM CT  APA formatted References Due: 5/10 3:00 a.m.James Welling, 
a 37 year old engineer has an appointment to meet you in about an hour. As you 
are reviewing his accounts, you notice that he is a fairly active trader. He 
seems to do pretty well with returns that outpace the averages, but you can't 
help wonder how much he ends up paying each year in capital gains taxes. 
As his appointment time approaches, you prepare a short explanation of the 
way that capital gains taxes may be hurting his net returns and the difference 
between short-term gains and long-term gains.
Prepare some detailed discussion points that cover the following:

How capital gains taxes may be hurting James' net returns.
The difference between short-term gains and long-term gains.

Robert · Accepted Answer

Capital gain tax 
In the present assignment we will understand how capital gain tax hurts the investors and 
how short term capital gain tax is different from long term capital gain tax. James Welling, a 37 
year old engineer is an active trader who earns good return on his investment and ends up paying 
huge capital gain taxes, we will first explain him the difference between the short term and long 
term capital gain tax and then how his returns are affected by these taxes. 
Capital gain tax is charged on the sale of capital assets; here capital assets can be defined 
as every asset you own and use for personal or investment purpose. Capital gain tax is further 
divided in two categories one is short term capital gain tax and another is long term capital gain 
tax. Short term capital gain tax is charged on those capital assets which are being held for one 
year or less, there are no special tax rates applicable on short term capital gain tax i.e.

Assignment Type: Individual Project Deliverable Length: 150 word minimum Points Possible: 125 Due Date: 5/19/2013 11:59:59 PM CT APA formatted References Due: 5/10 3:00 a.m. James Welling, a 37 year...

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