|
|
I love long-term capital gains! You should, too.Mar 02 '01 Write an essay on this topic.The Bottom Line Long-term capital gains are highly prized by taxpayers because of their favorable tax treatment. Be sure to hold assets more than one year to qualify. Long-term capital gains or losses are capital gains or losses on assets you dispose of (sell) more than one year from the time you acquire them. Long-term capital gains are highly prized by taxpayers because of their favorable tax treatment. While the tax rates on short-term capital gains are the same as the rates on ordinary income, the taxes on long-term capital gains are limited to 10% for those in the 15% tax bracket and 20% for those in the 28% or higher tax brackets. Over the next few years, a super-long-term holding period of five years (and some additional qualifications) will kick in with even lower tax rates. Be careful with the holding period. The first day after you purchase an asset is the first day of the holding period. The 365th day after you purchase is the last day of the short-term holding period. Therefore, to qualify for the long-term holding period, you must sell the asset no earlier than the 366th day after you bought it. (I'll leave it to you to figure out the effect of leap years.)  |
| Write the first comment on this review! |
|
Ads by Google
|
