If an investor is in a 34 percent tax bracket and has held a stock for two years,the applicable tax rate that will apply to dividends is

Question

Quizplus · Accepted Answer

If an investor has held a stock for at least two years, they qualify for the long-term capital gains tax rate on dividends. For someone in the 34 percent tax bracket, the long-term capital gains tax rate on dividends is 15 percent. Therefore, choice A is the correct answer.

If an Investor Is in a 34 Percent Tax Bracket