💰 CPA Exam Prep

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

A Ordinary income rates
B Preferential rates (0%, 15%, or 20%) depending on taxable income
C A flat 30%
D 50% of ordinary rate

✓ Correct Answer: Option B

Long-term capital gains (held >1 year) receive preferential tax rates: 0%, 15%, or 20% based on income level.

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