Long-term capital gain classification is advantageous to taxpayers because of which of the following?
I.Long-term capital gains are generally taxed at a lower rate than ordinary income.
II.Part of a long-term capital game is excluded from income.

A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Question

Long-term capital gain classification is advantageous to taxpayers because of which of the following?
I.Long-term capital gains are generally taxed at a lower rate than ordinary income.
II.Part of a long-term capital game is excluded from income.
​
A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Quizplus · Accepted Answer

Long-term capital gains are typically taxed at a lower rate than ordinary income, making them advantageous for taxpayers. However, there is no general exclusion of a portion of long-term capital gains from income; instead, the benefit comes from the lower tax rates applied to these gains.

Long-Term Capital Gain Classification Is Advantageous to Taxpayers Because of Which