The cost of acquisition of the asset, also known as the adjusted basis, is a crucial factor in determining the capital gain or loss. It is subtracted from the proceeds of the sale to calculate the taxable gain.

Personal-use assets, such as cars and houses, are not considered capital assets and are therefore not subject to capital gains taxation.

For individuals in the highest tax bracket, the maximum federal capital gains tax rate is 20%.

In the United States, assets held for more than one year qualify for long-term capital gains treatment, which typically results in a lower tax rate.

Collectibles, such as art and antiques, are not typically eligible for capital gain exclusions.

A wash sale occurs when a taxpayer sells an asset at a loss and then repurchases a substantially identical asset within a short period of time. This strategy is used to defer the recognition of the capital loss.

The difference between the proceeds of a sale and the adjusted basis of an asset is referred to as a capital gain.

Ordinary income is not a factor that affects the calculation of the net capital gain or loss.

For corporations, the maximum federal capital gains tax rate is 21%.

LIFO (Last-in, first-out) is not a common method for calculating the cost basis of an asset.

The sale of an asset at a price lower than its adjusted basis is referred to as a capital loss.

Bonds are not typically subject to capital gains taxation.

Realization is the process of reporting capital gains and losses on a tax return.

Net operating loss carryback is not a common type of capital gain tax deferral strategy.

The sale of an asset at a price higher than its adjusted basis is referred to as a capital gain.