Asked by Roselyn Villaruz on Jul 05, 2024

verifed

Verified

A corporation with a net capital gain will be taxed on that gain at preferential tax rates,similar to an individual.

Net Capital Gain

The profit from the sale of an investment or property, calculated as the difference between the sale price and the original purchase price after adjusting for various factors such as brokerage fees, taxes, and improvements.

Preferential Tax Rates

Lower tax rates applied to certain types of income, such as long-term capital gains and qualified dividends, compared to ordinary income tax rates.

Corporation

A legal entity owned by shareholders with rights and responsibilities distinct from those of its owners, recognized by law as a single entity.

  • Gain insight into the special tax treatment and provisions applicable to corporations, including alternative minimum tax and specific deductions.
verifed

Verified Answer

DH
Danielle Hurts-TaylorJul 11, 2024
Final Answer :
False
Explanation :
Corporations do not benefit from preferential tax rates on net capital gains; they are taxed at the same rate as their ordinary income.