Answered

Get the answers you need from a community of experts on IDNLearn.com. Discover detailed answers to your questions with our extensive database of expert knowledge.

Which statement accurately describes the difference between short-term and long-term capital gains in terms of taxes? A. Long-term capital gains are from investments that have been held for more than one year and are taxed at a lower rate than short-term capital gains. B. Long-term capital gains are from investments that have been held for at least six months and are taxed at a lower rate than short-term capital gains. C. Long-term capital gains are from investments that have been held for more than one year and are taxed at a higher rate than short-term capital gains. D. Long-term capital gains are from investments that have been held for at least six months and are taxed at a higher rate than short-term capital gains.

Sagot :

Parrainidn

Answer: A. Long-term capital gains are from investments that have been held for more than one year and are taxed at a lower rate than short-term capital gains.

Step-by-step explanation:

Long-term capital gains are indeed from investments that have been held for more than a year as opposed to short term gains from investments of less than a year. This means that long term gains can come from investments such as stocks and bonds.

Long-term capital gains are taxed at a lower rate than short term gains with most long term gains being taxed at 15% or lower. This is in contrast to short-term gains that are taxed at the same rate as ordinary income which means it could go up to as high as 37%.

Your participation means a lot to us. Keep sharing information and solutions. This community grows thanks to the amazing contributions from members like you. Discover the answers you need at IDNLearn.com. Thank you for visiting, and we hope to see you again for more solutions.