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
- Apple Earnings: What the Media Got Wrong
- Why the Numbers Just Don't Add Up to Buy United Airlines
- What Is the Winning Formula for These Off-Price Retailers?
- Surprisingly Strong North America Results at Baker Hughes Inc
- Apache Sees Opportunity in 2014 and Beyond
- Here's Why You Should Capitalize on Alcatel-Lucent?s Pullback