Recovery of capital doctrine
In today's world, Recovery of capital doctrine has gained great relevance and interest. There are many investigations and discussions that revolve around Recovery of capital doctrine, since its impact covers various aspects of society. Both on a personal and collective level, Recovery of capital doctrine has become a recurring topic of conversation and a focal point of attention. It has become crucial to understand and analyze Recovery of capital doctrine from different perspectives, in order to obtain a complete picture of its reach and influence. Therefore, it is important to address the topic of Recovery of capital doctrine in a detailed and objective manner, in order to contribute to the debate and enrich knowledge on this topic.
In United States tax law the recovery of capital doctrine protects a portion of investment receipts from being taxed, namely the amount that was initially invested. This is because the investor is receiving his or her own money which is being returned to him or her.
For example, if a person purchased stock in a company totalling $10,000 and then sold it a few years later for $15,000, only $5,000 would be eligible for taxation. The initial $10,000 is protected under the recovery of capital doctrine.[1]
References
- ^ Hoffman, William; Smith, James; Willis, Eugene (2007). West Federal Taxation 2008: Individual Income Taxes, Professional Version. Cengage Learning. p. 14-7. ISBN 978-0-324-38059-0.
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