Capital gains tax
A capital gains tax is one levied on the difference between the sale and purchase price of an investment, assuming the difference is a profitable one.
Short-Term Capital Gains Tax
The short-term capital gains tax applies to investments held for fewer than 366 days. The short-term capital gains tax is currently 35%, compared to a ceiling of 15% for long-term capital gains.
Long-Term Capital Gains Tax
The long-term capital gains tax applies to any investment held for at least 366 days. The top rate for capital gains tax is currently 15% in the United States, compared to 35% for short-term capital gains tax.
Related Fool Articles
Recent Mentions on Fool.com
- Should You Bet on the Action at Lululemon Athletica?
- General Dynamics Stock Pops Despite Revenue Decline, Weaker Net Earnings
- Don't Buy Another Bank Stock Until You Read This
- Is First Niagara Financial the Value Buy You've Been Looking For?
- Republic Services? Q2 Earnings Preview
- The Boeing Co.'s EPS Soared 59%, but Its Stock Price Dropped -- What Gives?