If an individual taxpayer's marginal tax rate is 35 percent and he holds the following assets for more than one year, which gain will be taxed at the highest rate at the time of sale?

Question

Quizplus · Accepted Answer

Gain from a coin collection is subject to a 28% tax rate, which is higher than the capital gains tax rate for most other assets but lower than the marginal tax rate of 35%. However, among the options provided, it is considered to be taxed at a special rate that is higher than the preferential long-term capital gains rates applicable to most other assets listed, but not necessarily higher than the individual's marginal tax rate. The question's phrasing might be misleading by suggesting a comparison to the marginal tax rate; however, within the context of the options given, the coin collection, being a collectible, is taxed at a distinct rate that stands out for its category.

If an Individual Taxpayer's Marginal Tax Rate Is 35 Percent