A client sells stock held for 14 months at a gain. This gain is generally taxed as:

a.A long-term capital gain, taxed at preferential rates
b.A short-term capital gain, taxed as ordinary income
c.Tax-free
d.Subject to a 10% early withdrawal penalty

Explicación

Assets held longer than one year produce long-term capital gains, which are taxed at preferential rates below ordinary income rates. A 14-month holding period exceeds the one-year threshold. Short-term gains, from holdings of one year or less, are taxed as ordinary income.

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