Which of the following statements is true?

Question

Quizplus · Accepted Answer

Qualified dividend income is taxed at a lower rate than an equal amount of ordinary income. This is because qualified dividends are taxed at the capital gains tax rate, which is generally lower than the ordinary income tax rate. The other statements are false. Income character is determined by the type of income, not the tax year or filing status. Selling a capital asset at a gain results in capital gains income, not ordinary income.

Which of the Following Statements Is True