Question

What is the difference between a capital gains tax and an income tax?

O
A. One is paid to the federal government; the other is paid to
employers.
O
B. One is used to provide for services; the other is used to provide for
goods.
O
C. One is assessed on the profit made from selling an asset; the
other is assessed on earnings from work or investments.
O
D. One is paid annually; the other is paid every 10 years.

Answer 1

C. One is assessed on the profit made from selling an asset; the

other is assessed on earnings from work or investments.

Step-by-step explanation:

The capital gains tax occurs only if as a result of the sale of an asset there is a profit that is exceptional and differ from the primarily economic activity of the person that made the sell.