For someone whose salary is $120 000,what type of investment income receives the lowest tax consequences?

Question

Quizplus · Accepted Answer

Capital gains are taxed at a lower rate compared to dividends and interest. For someone with a salary of $120,000, the tax rate on capital gains is 20% (or 10% for low-income earners), compared to a tax rate of 32% for dividends and interest. Trust income may also receive lower tax consequences, but the specific type of trust and its income would need to be considered.

For Someone Whose Salary Is $120 000,what Type of Investment