Tax rates on long-term versus short-term capital gains

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Reference no: EM131453405

Capital Gains Taxes. What is the difference in tax rates on long-term versus short-term capital gains?

Income from interest payments, coupon payments, and capital gains on assets held for less than a year are: (Select the best answer below.)

A. taxed at a higher rate than ordinary income. These are short-term capital gains.

B. taxed as ordinary income. These are long-term capital gains.

C. taxed as ordinary income. These are short-term capital gains.

D. taxed at a lower rate than ordinary income. These are short-term capital gains.

Capital gains resulting from the sale of investments held more than one year? are: ?(Select the best answer? below.)

A. short-term capital gains and are taxed at a lower rate than ordinary income for most investors.

B. ?long-term capital gains and are taxed at a lower rate than ordinary income for most investors.

C. long-term capital gains and are taxed at a higher rate than ordinary income for most investors.

D. ?long-term capital gains and are taxed as ordinary income for most investors.

Reference no: EM131453405

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