The benefit of being classified as a capital gain is that the income is subject to a tax rate that maxes out at 20%, which may be well below the tax rates associated with depreciation recapture income and ordinary income for a particular investor. In order to qualify for the lower capital gain tax rate, the property being sold must be held for more than:

Question

Quizplus · Accepted Answer

To qualify for the lower capital gain tax rate, the property being sold must be held for more than 12 months.

The Benefit of Being Classified as a Capital Gain Is