TAX QUESTION

1. TF.03-67

Frank sold his personal use automobile for a loss of $9,000. He also sold a personal coin collection for a gain of $10,000. As a result of these sales, $10,000 is subject to income tax.

True

False

2. TF.03-68

Gain on the sale of collectibles held for more than 12 months always is subject to a tax rate of 28%.

True

False

3. TF.03-69

Stuart has a short-term capital loss, a collectible long-term capital gain, and a long-term capital gain from land held as investment. The short-term loss is first applied to the collectible capital gain.

True

False