One aspect of the tax considerations in asset allocation is that:
A) capital gains are often taxed at a higher rate than dividend and interest income.
B) Roth accounts offer a tax savings in the year they are opened.
C) investors are exempt from taxes on capital gains once they reach age 65.
D) taxes on capital gains are deferred until the gain is realized.

Question

Quizplus · Accepted Answer

Taxes on capital gains are deferred until the gain is realized, meaning investors do not pay taxes on the gains until they sell the asset and realize the profit.

One Aspect of the Tax Considerations in Asset Allocation Is