Which of the following statements regarding the taxation of corporate and personal income are incorrect?
i. The tax rate for long term capital gains for individuals is capped (maximum limit) at 15% (according to our class notes).
ii. In calculating taxable income the company deducts an allowance for depreciation and interest payments. It cannot deduct dividend payments to the shareholders.
iii. Individuals are also taxed on their income, which includes dividends and interest on their investments.
iv. Capital gains are taxed on investors annually, whether or not the investment is sold and the gain realized.
a. i and ii.
b. ii.
c. iii and iv.
d. iv.