which of the following types of income are permitted a preferential tax rate? (select all that apply.) multiple select question. qualified dividends capital gains interest income salary and wages

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05-12-2022
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which of the following types of income are permitted a preferential tax rate? (select all that apply.) multiple select question. qualified dividends capital gains interest income salary and wages

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kumargaurav1012000 kumargaurav1012000 · Answer 1 · 2022-12-08T11:31:42-05:00

Capital gains is subject to a preferential tax rate. Gains from the sale or exchange of capital assets, such as stocks and bonds, real estate, and pieces of art, are referred to as capital gains.

The Revenue Act of 1921, which reduced taxes in an effort to boost an economy troubled by recession, unemployment, and labor unrest, created the first preferential rate on capital gains.

Gains from the sale or exchange of capital assets, such as stocks and bonds, real estate, and pieces of art, are referred to as capital gains. Long-term capital gains, which are gains from capital assets held for more than a year, are taxed at 20 percent under the present tax code.

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