Question

Mike and Karen are discussing the advantages or advantage, from investing in capital assets.

From the following choices, select all correct answers. Your grade will be determined as the number of correct less the number of incorrect answers.

Question 12 options:

	Gains on capital assets are taxed at a maximum rate of 15 percent.
	Gains on the sale of collectibles such as art are taxed at a maximum rate of 28 percent.
	Gains on capital assets are generally deferred
	Gains on the sale of investment bonds are taxed at a maximum rate of 25 percent.

Answer 1

Correct

Gains on the sale of collectibles such as art are taxed at a maximum rate of 28 percent.

Gains on capital assets are generally deferred

Incorrect

Gains on capital assets are taxed at a maximum rate of 15 percent

- In 2019 and 2020 the capital gains tax rates are either 0%, 15% or 20%

Gains on the sale of investment bonds are taxed at a maximum rate of 25 percent.

- All gains and income earned within an investment bond are taxed at 20% and paid directly out of the investment bond.