Which one of the following statements is correct concerning the taxation of dividends and capital gains?

Question

Quizplus · Accepted Answer

As of 2003, individual investors pay a 15 percent tax on both dividends and capital gains. The other statements are incorrect. Option A is not entirely true as the percentage of tax exemption on capital gains can vary depending on the holding period of the investment. Option B is not true as dividends are taxable income for individual investors. Option C is not true as the tax rate on dividend income varies depending on the investor's tax bracket. Option D is also not true as it refers to tax-deferred accounts such as IRAs and 401(k)s, not individual investors.

Which One of the Following Statements Is Correct Concerning the Taxation