Under current tax laws, which of the following distributions received from a mutual fund qualify for preferential tax treatment?
I. short-term capital gains
II. long-term capital gains
III. qualifying dividends
IV. non-qualifying dividends

Question

Quizplus · Accepted Answer

Only Selections II and III-long-term capital gains and qualifying dividends-qualify for preferential tax treatment under current tax laws. Both are taxed at either 0% or 15%, depending on the investor's marginal tax rate. Short-term capital gains and non-qualifying dividend distributions are taxed as ordinary income at the investor's marginal tax rate.

Under Current Tax Laws, Which of the Following Distributions Received