Which of the following is incorrect with regard to taxes imposed on stock transactions?
A)Stock transactions are subject to dividend and capital gains tax at the federal level and may be subject to state income tax as well.
B)Stocks have to be held for at least one year to qualify for the long-term capital gains tax.
C)The maximum federal tax on dividends and long-term capital gains is 14 percent.
D)Higher tax rates are imposed on the dividends and capital gains of individuals in high tax brackets.

Question

Quizplus · Accepted Answer

The maximum federal tax rate on dividends and long-term capital gains is higher than 14 percent. As of the last update, it can be up to 20% for individuals in the highest income bracket, not including the additional 3.8% Net Investment Income Tax that may apply.

Which of the Following Is Incorrect with Regard to Taxes