Series 7 practice questionhardTax Implications 691
A capital gain on stock held for more than one year is generally taxed at:
- Along-term capital gains rates✓ Correct answer
- Bordinary income rates only in every case
- Cmunicipal income tax rates only
- DAMT preference rates only
Explanation
Why A — long-term capital gains rates
Stock held more than one year generally qualifies for long-term capital gain treatment when sold at a profit. That is different from short-term gains, which are usually taxed as ordinary income.
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