Because both are taxed at rates applicable to net long-term capital gain,it does not matter whether a stock redemption is treated as a sale or exchange or as a dividend.

Name: Because both are taxed at rates applicable to net long-term capital gain,it does not matter whether a stock redemption is treated as a sale or exchange or as a dividend.
Brand: Quizplus
Rating: 4.8 (51 reviews)

Question

Quizplus · Accepted Answer

The tax implications differ; a sale or exchange may allow for offsetting capital losses, while dividends are taxed as ordinary income without such offsets.

Because Both Are Taxed at Rates Applicable to Net Long-Term