Which of the following is true of the taxation of capital gains in the United States?

Question

Quizplus · Accepted Answer

Capital gains in the United States are taxed on realization, which means that they are only subject to tax when the asset is sold or otherwise disposed of, rather than when the gain is accrued. Short-term capital gains (gains from assets held for less than a year) are taxed at the same rate as ordinary income, while long-term capital gains (gains from assets held for more than a year) are subject to special capital gains tax rates. Tax deferral strategies, such as tax-advantaged retirement accounts or like-kind exchanges, can be used to potentially reduce or delay the taxation of capital gains.

Which of the Following Is True of the Taxation of Capital