there are two different tax rates for profits from selling investments. what determines which tax rate you…

there are two different tax rates for profits from selling investments. what determines which tax rate you pay when you decide to sell an investment? choose 1 answer: a the type of investment b your income c how long you owned the investment d who you sell to
Answer
Brief Explanations:
When it comes to capital - gains taxes (taxes on profits from selling investments), the holding period of the investment is a key determinant. Short - term capital gains (for investments held for one year or less) are taxed at ordinary income tax rates. Long - term capital gains (for investments held for more than one year) are taxed at lower rates. The type of investment (A) may have some implications in terms of tax - advantaged accounts etc., but the primary determinant for the basic tax - rate distinction is the holding period. Income (B) can affect the actual amount of tax paid (especially for long - term gains where there are different tax brackets), but it is not the factor that distinguishes between the two main tax - rate categories (short - term vs long - term). Who you sell to (D) generally does not affect the tax rate.
Answer:
C. how long you owned the investment