When Electing to Include Preferentially-Taxed Capital Gains and Qualified Dividends

question 17

True/False

When electing to include preferentially-taxed capital gains and qualified dividends in net investment income, taxpayers must include all preferentially-taxed capital gains and qualified dividends recognized for that year.

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Definitions:

Buyers

Individuals or entities that acquire goods or services in exchange for money.

Social Security Tax

A tax collected by the government to fund the Social Security program, typically levied on both employers and employees to provide retirement, disability, and survivorship benefits.

Federal Income Tax

An annual financial burden put on individuals, corporations, trusts, and various legal bodies by the United States federal government.

Labor Taxes

Taxes imposed on the wages and salaries of employees.