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Another function of the U.S. tax code is the tax on capital gains. A capital gain occurs when you sell something, such as your home

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Another function of the U.S. tax code is the tax on capital gains. A capital gain occurs when you sell something, such as your home or another investment, for a price higher than what you paid for it (a capital loss occurs when the price is lower than what you had originally paid). Read the article on Capital Gains Tax to learn more about the function of this tax and how it could affect you. Suppose Sam buys 100 shares of XYZ Corp. for a price of $30.00 on January 1st. Sam then decides to sell the shares in August of the same year for the market price of $29.50. Answer the following questions: What are the tax implications of this trade? Are there any limitations on certain amounts that can be used when filing taxes? Is this a short-term or long-term capital gain/loss and if so, what are the tax implications of this trade? What strategies could Sam have employed before or after selling the shares that could be of financial benefit

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