Question

question 1 of 5
which statement about capital gains is true?
taxes on capital gains cannot be cancelled out by investment losses.
capital gains equals the selling price minus the purchase price.
capital gains equals the purchase price minus the market value.
capital gain taxes are levied by state governments.

Explanation:

Capital gains are calculated as the selling price minus the purchase price. Investment losses can offset capital gains for tax purposes. Capital gain taxes are levied by federal governments (in many countries like the US, though some states may also have additional taxes but the main one is federal). And capital gains is not purchase price minus market value.

Answer:

Capital gains equals the selling price minus the purchase price.