Which of the following is true about capital gains?

Question

Quizplus · Accepted Answer

For 2016, long-term capital gains are subject to a lower tax rate than ordinary income, while short-term capital gains are taxed at ordinary income rates. Option A is incorrect, as short-term capital gains are only netted with short-term capital losses and vice versa. Option C is incorrect, as long-term capital gains are subject to taxation, albeit at a lower rate. Option D is incorrect, as net short-term capital gains can be netted with net long-term capital losses to determine the overall capital gain or loss for the year.

Which of the Following Is True About Capital Gains