TERM 1
In 2011 you purchased $1500 of IBM and sold
it this year for $1200. Since you lost money
on this transaction, there is no reason to
include this on this year's tax return. T/F
DEFINITION 1
False
TERM 2
In 2005 you purchased a stamp collection for
$75 and you sold it this year for $150.
Legally, you don't need to pay any taxes on
this transaction. T/F
DEFINITION 2
False
TERM 3
Adjusted gross income is your total gross
income adjusted for inflation. T/F
DEFINITION 3
False
TERM 4
Only people in the higher tax brackets pay
taxes on capital gains. T/F
DEFINITION 4
False
TERM 5
For most tax payers, their average tax rate is
lower than their marginal tax rate. T/F
DEFINITION 5
False
