1. The holding period for property acquired by inheritance begins on the date of the decedent's death in 2010 and thus determines whether the gain or loss on disposition is long-term or short-term.

a. True b. False

2. A computer used exclusively-100% in a sole proprietor's accounting business is a capital asset.

a. True b. False

3. An individual's current year capital loss from investment property not offset against capital gains and ordinary income is carried forward indefinitely.

a. True b. False

4. Individuals may deduct capital losses only to the extent of their capital gains.

a. True b. False

5. The taxpayer reports a worthless security as a long-term capital loss in the year the security becomes worthless.

a. True b. False

6. Real property such as a commercial building depreciated using MACRS is not subject to depreciation recapture.

a. True b. False

7. Land held for six months is sold for a gain. The land is used in the taxpayer's business. The gain is treated as ordinary income.

a. True b. False

8. The tax laws treat capital gains and losses differently from ordinary gains and losses.

a. True b. False

9. The tax rate on net capital gains and qualified dividends is 15%.

a. True b. False

10. A nonbusiness bad debt is always treated as a short-term capital loss.

a. True b. False