Question

Select the correct answer.

Which statement accurately describes the difference between short-term and long-term capital gains in terms of taxes?
O A. Long-term capital gains are from investments that have been held for more than one year and are taxed at a lower rate than
short-term capital gains.
B. Long-term capital gains are from investments that have been held for at least six months and are taxed at a lower rate than
short-term capital gains.
O c. Long-term capital gains are from investments that have been held for more than one year and are taxed at a higher rate than
short-term capital gains.
OD. Long-term capital gains are from investments that have been held for at least six months and are taxed at a higher rate than
short-term capital gains.
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Answer 1

A.) Long-term capital gains are from investments that have been held for more than one year and are taxed at a lower rate than short-term capital gains.

Step-by-step explanation:

Long-term capital gains are earned on investments kept for longer than a year, as opposed to short-term capital gains earned on investments held for less than a year. This means that long-term gains from assets like stocks and bonds are possible. Long-term capital gains are taxed at a lower rate than short-term capital gains, with the majority of long-term gains taxed at 15% or less. Short-term gains, on the other hand, are taxed at the same rate as ordinary income, which means they may be as high as 37 percent. I hope this helps! ^-^