If your marginal tax rate is 15% your capital gains tax rate on a stock you have held for 10 years would be ___.

Question

Quizplus · Accepted Answer

The capital gains tax rate depends on the taxpayer's income tax bracket. If the taxpayer's marginal tax rate is 15% or lower, then the capital gains tax rate on a stock held for at least one year is 0%. However, if the stock has been held for 10 years, the capital gains tax rate would still be 0%. So, the answer would be A) 5% only if the taxpayer's marginal tax rate is higher than 15% and they sell the stock before holding it for one year.

If Your Marginal Tax Rate Is 15% Your Capital Gains