Mrs. Stout has a $35,000 capital gain eligible for a 28% preferential tax rate. Which of the following statements is false?

Question

Quizplus · Accepted Answer

A) is false because taxpayers cannot elect to recharacterize capital gains as ordinary income to take advantage of a lower regular marginal tax rate. The preferential tax rate for capital gains is applied automatically based on the type of gain and cannot be changed at the taxpayer's discretion.

Mrs Stout Has a $35,000 Capital Gain Eligible for a 28