Understanding Tax Implications and Investment Gains Quiz

Short-term capital gains in the U.S. are taxed at a rate of 20%.

The term for the difference between an asset's purchase and selling price is capital gain.

Long-term capital gains in the U.S. for individuals in the lowest tax bracket are taxed at a rate of 0%.

A long-term capital asset example is artwork held for more than one year.

Investing in a Roth IRA provides the advantage of tax-free withdrawals during retirement.

An investment needs to be held for more than one year to qualify as a long-term capital gain under the U.S. tax code.

The United Kingdom introduced the world's first income tax.

Qualified dividends in the U.S. for individuals in the highest tax bracket are taxed at a rate of 20%.

Collectibles are subject to the highest tax rate on capital gains in the U.S.

The 529 plan allows for tax-free withdrawals for qualified education expenses.

Bonds are not subject to capital gains tax in the United States.

An investment strategy minimizing taxes and maximizing after-tax returns is tax-efficient investing.

A Health Savings Account (HSA) allows for tax-free withdrawals for qualified medical expenses.