SIE Exam Practice Question 43

Correct Answer: C

Explanation:

The maximum tax rate on a long-term capital gain is 20 percent for an individual in the highest tax bracket. Long-term capital gains are the net sales on assets held for more than one year. For TY 2020, the highest tax bracket begins at income levels of $518,400 (Single or Head of Household), $622,050 (Married Filing Jointly), or $311,025 (Married Filing Separately).