For someone in the highest tax bracket, what is the best type of return on investment for minimal tax consequences?

Question

Quizplus · Accepted Answer

Capital gains are taxed at a lower rate than ordinary income such as interest or dividends. For someone in the highest tax bracket, minimizing tax consequences would be best achieved through investments that generate long-term capital gains. Trust income may also be taxed at a lower rate, but it depends on the specific circumstances and nature of the trust.

For Someone in the Highest Tax Bracket, What Is the Best