A taxpayer in the 35 percent marginal tax bracket would pay less taxes by holding an investment with capital gains over one year.

Question

Quizplus · Accepted Answer

Holding an investment with capital gains over one year qualifies for long-term capital gains tax rates, which are lower than the taxpayer's marginal income tax rate. Therefore, the taxpayer would pay less taxes on the investment by holding it for over a year.

A Taxpayer in the 35 Percent Marginal Tax Bracket Would