10+Capitol+Gains+Tax

A Capital Gains Tax is the tax the government charges on the money people make by "selling stocks, earning dividends, or interest form a bank account or bond that matures (except gov’t bonds) ". Capital gains are generally taxed at a preferential rate in comparison to ordinary income. This is intended to provide incentives for investors to make capital investments and to fund entrepreneurial activity. The amount an investor is taxed depends on both his or her tax bracket, and the amount of time the investment was held before being sold. **Short-term capital gains** are taxed at the investor's ordinary income tax rate, and are defined as investments held for a year or less before being sold. **Long-term capital gains**, which apply to assets held for more than one year, are taxed at a lower rate than short-term gains.

Nicholas C. If you want to pay as little Capital gains tax as possible,what do you do? a Sell as Quick as possible b Hold on to it for at least a year to pay lower rates c The tax is always the same