Registered Tax Return Preparer RTRP Practice Exam

Question: 1 / 400

What is the tax rate for long-term capital gains for most taxpayers?

10% or 12%

15% or 20%

The tax rate for long-term capital gains for most taxpayers is 15% or 20%. Long-term capital gains apply to assets held for more than one year before being sold, and the rates applicable depend on the taxpayer's income level.

For individuals in lower income brackets, the rate can be zero, but for the majority of taxpayers falling within the middle-income brackets, the long-term capital gains tax rate is typically 15%. Higher-income individuals might be subject to a 20% rate on their long-term capital gains, particularly if their taxable income exceeds certain thresholds.

Thus, the correct choice accurately reflects the standard tax rates affecting most taxpayers regarding long-term capital gains, aligning with current tax law structures designed to encourage long-term investment.

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25%

Zero%

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