ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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capital gains on the investment will be taxed at a lower rate.
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fees will not be charged by brokers for selling the investment.
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money earned on the investment will be considered tax-free.
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profits on the investment can be averaged over the length of time the investment is held.
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Detailed explanation-1: -If you sell an asset for more than you paid for it, your profit (minus your cost basis) is called a capital gain. Short-term capital gains are profits from selling assets you own for a year or less. They’re usually taxed at ordinary income tax rates (10%, 12%, 22%, 24%, 32%, 35%, or 37%).
Detailed explanation-2: -What are capital gains? Capital gains are profits on an investment. When you sell investments at a higher price than what you paid for them, the capital gains are “realized” and you’ll owe taxes on the amount of the profit.
Detailed explanation-3: -Short-term Capital Gains are those that you earn when you sell an asset in under 36 months (3 years) from the date on which you acquired the asset. Long-term Capital Gains are those that you earn when you sell an asset after 36 months (3 years) from the date on which you acquired the asset.
Detailed explanation-4: -Long term capital gain tax is applicable if the asset is sold after holding it for the tenure of 36 months from the date of acquisition.