💰 CPA Exam Prep

Capital gains on assets held longer than one year are taxed at:

A Ordinary income rates
B Preferential (lower) long-term capital gains rates
C Zero percent always
D Payroll tax rates

✓ Correct Answer: Option B

Long-term capital gains (assets held >1 year) are taxed at preferential rates: 0%, 15%, or 20%.

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