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Business, 06.05.2020 08:37 preachersgirl5

15 Which of the following statements is true: A. Income character determines the tax year in which the income is taxed. B. Income character depends on the taxpayer's filing status. C.Qualified dividend income is taxed at a lower rate than the same amount of ordinary income. D. A taxpayer selling a capital asset at a gain recognizes ordinary income. Qualified dividends are taxed at a maximum rate of 15% or 20% (depending on the taxpayer's income) and are always taxed at a lower rate than the same amount of ordinary income would be. Income character determines the rate at which income is taxed and it does not depend on filing status. Finally, a taxpayer selling a capital asset at a gain recognizes capital gain not ordinary income.

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