Answer:
Formal tax legislation is the process by which a proposed tax rule or tax change may become law in the United States. Formal tax legislation follows specific steps as defined by the U.S. Constitution.
Explanation:
Overmanaging is the most evident mistake Claudia made as a senior accountant.
Answer:
Capital gains distribution is treated as long term
Capital gain from from redemption is treated as short term
Explanation: Capital gains may be explained as the profit made from the sale of a property or investment. Depending on the holding duration of the stock or bond, a capital gain may be classed as short term is held for below one year or long-term, of held for more than 1 year. However, According to the Internal Revenue service regulation, Capital gains are taxed as long term irrespective of the holding period in which the owner has possessed the fund.
Capital gains redemption however, follows the usual time-line and in this case would be taxed as short-term because the holding period is between July to May, which is a 10 months. Since it hasn't exceeded a year, then, it is classed as short term.
