Long-term capital gains apply to assets held over one year. They receive preferential tax rates: 0%, 15%, or 20% based on income. Much lower than ordinary income rates. Incentivizes long-term investing.
Example
Sell stock after 13 months; qualify for 15% LTCG rate.
Subscribe for simple financial insights and product updates. No spam, ever.
No spam, ever. Unsubscribe anytime.