Schweser Mock Book1 Exam 2 Q6B

the answer use the long term gains tax rate to adjust T* while schweser notes use realized cg tax rate to adjust T*…

I mean the “t cg” in the formula to calculate T*… why should not we use the short term gains tax rate in this Q6B?

many thanks!

I think because the question states the capital gains will be realized at the end of the holding period (5 years). Therefore use long term capital gains tax rate. hope that helps…

thanks!

this means, if not stated, then use the standard t cg to adjust T*?