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
- Why Don't These Winning Stocks Pay Dividends?
- This Should Be Your First Investment
- 26 Unsettling Truths About Social Security
- 6 Quotes From Berkshire Hathaway's Greatest Ever Shareholder Letter
- Whoa, a Profit for Isis Pharmaceuticals Inc.
- 25 Major Factors That Caused or Contributed to the Financial Crisis