Which statements are TRUE regarding the taxation of capital gains?

Which statements are TRUE regarding the taxation of capital gains?



I A capital gain is considered to be short term if a position is liquidated at a profit after being held for 1 year or less

II A capital gain is considered to be short term if a position is liquidated at a profit after being held for over 1 year

III For investors in the maximum tax bracket, any short term capital gains will be taxed at the same tax rate as that bracket

IV For investors in the maximum tax bracket, any short term capital gains will be taxed at a lower rate than that bracket



Answer: I and III


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