Answered: The most tax-advantaged form of income…

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The most tax-advantaged form of income for investors is

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter4: Additional Income And The Qualified Business Income Deduction

Section: Chapter Questions

Problem 18MCQ

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Question

The most tax-advantaged form of income for investors is

Group of answer choices

a. long-term capital gain income

b. dividend income

c. interest income on corporate debt

d. Both dividend income and long-term capital gain are equal in their tax advantage

Definition Definition Increase in the value of a capital asset and the amount that is realized when the asset is sold off. A capital gain may be short-term or long-term depending on the tenure for which the asset is held.

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