The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Loss of Job||Date: 12/11/2005 9:03 PM|
|Author: lorenzo2||Number: 81875 of 125696|
the federal government taxes short-term (held less than 1 year) and long-term (held 1+ years) gains differently. ST gains are taxed like regular income; LT gains are taxed at a special rate (15%, I think).
To be excessively picky:
- The short-term holding period is a year or less; long-term is more than a year.
- The rate on long-term capital gains is 15% if your tax bracket is 25% or higher. If you're in the two lowest bracket, long-term capital gains are taxed at just 5%.
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