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Long term

Long term. Under Federal tax code, capital gains are eligible for the special 15% tax rate if the property was owned more than one year. If the time of ownership was less than one year, gains are taxed as short term capital gains at ordinary income tax rates.

Expanded Definition

Capital losses can be deducted from their in kind capital gains. Long term losses reduced long term gains; short term losses reduce short term gains.

If long term losses exceed gains, up to $3000 per year may be deducted from ordinary income. Any excess over $3000 may be treated as a capital loss carry over and deducted from future years income until the total loss has been fully deducted.

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