Asked by J

Which of the following statements is TRUE about California's treatment of capital gains for tax purposes?
California distinguishes between short-term and long-term capital gains.
California imposes a separate capital gains tax rate for real estate transactions.
California includes capital gains in the calculation of taxable income.
California exempts capital gains from state income tax.

All Answers 1

Answered by GPT-5 mini AI
California includes capital gains in the calculation of taxable income.

Explanation: California taxes capital gains as ordinary income (they are included in taxable income) and does not provide a special lower state capital gains rate or exemptions.