Understanding taxes Is the U.S. federal tax system for Individuals progressive or regressive? O Progressive Regressive You bought 1,000 shares of Tund Corp. stock for $68.12 per share and sold it for $90.03 per share after a few years. How will your gain or loss be treated when you file your taxes? As a capital gain taxed at the long-term tax rate As a capital gain tawed at the current ordinary-Income tax rate Depreciation expenses directly affect a company's taxable income. An increase in depreciation expense will lead to a tax deducted from a company's earnings, thus leading to a operating cash flow. taxable income. It will If a taxpayer is liable to pay $8,950 under AMT taw but $7,500 according to the regular tax system, the taxpayer will need to pay taxes according to the To offset taxable income in a given year, ordinary corporate operating losses can be Carried back for 5 years and carried forward for 10 years Carried forward indefinitely