Which of the following statements is true regarding capital gains?

Question

Quizplus · Accepted Answer

Capital gains are profits from investments such as stocks, real estate, and mutual funds. They are not taxed at the same rate as ordinary income, but rather at a lower rate. The exact rate depends on various factors such as the length of time the investment was held and the individual's tax bracket. The tax rate for long-term capital gains (assets held for more than one year) is generally lower than that for short-term capital gains (assets held for one year or less). While some individuals with high incomes may pay the maximum capital gains tax rate of 20 percent, it is not a blanket statement that "most rich people pay the 35 percent capital gains tax."

Which of the Following Statements Is True Regarding Capital Gains