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
- Dow 17,000: I Am Not Exactly Celebrating
- American International Group: Why The Warrants May be a Better Bet Than The Common Stock
- Does Google Have Work to Do In the Near Term?
- Dow Earnings Season: Boeing Aims for the Skies
- Down 60% in 2014, Himax Technologies Is Finally a Value Play
- Mobile Gaming Can Take These 2 Stocks to New Highs