What is a common strategy to reduce capital gains tax burden? Option: Borrowing money to offset capital gains, Investing in high-risk assets, Holding assets for a longer period, Selling assets within a year

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What is a common strategy to reduce capital gains tax burden?

Borrowing money to offset capital gains

Investing in high-risk assets

Holding assets for a longer period

Selling assets within a year

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How does the holding period affect capital gains?

Holding periods only matter for real estate investments

Short-term gains are tax-exempt

Longer holding periods always result in higher capital gains

Holding periods determine if gains are long-term or short-term

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How are long-term and short-term capital gains differentiated?

By the holding period of the asset

By the amount of profit generated

By the investor's tax bracket

By the type of asset sold

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What is the impact of holding period on the taxation of capital gains from mutual funds?

"Longer holding periods generally result in lower tax liability"

"Holding period only impacts the taxation of dividends, not capital gains"

"Holding period does not affect the tax rate on capital gains"

"Shorter holding periods are more tax-efficient"

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What is the primary advantage of tax-loss harvesting as a wealth management strategy?

Increasing the overall rate of return on investments

Offsetting capital gains to minimize tax liability

Deferring tax payments on investment gains

Generating income through strategic asset sales

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What is the primary factor that determines whether a capital gain is considered long-term or short-term?

The type of asset

The holding period of the asset

The investor's tax bracket

The amount of profit