Mar 6, 2018 - For the wealthiest citizens who fall into the 39.6% income tax bracket, the capital gains rate is still only 20%. (For related reading, see: Capital Gains Tax 101.) Assume in the example above, your ,000 in investment income is from long-term investments held longer than a year. A long-term capital gain or loss is a gain or loss from a qualifying investment owned for longer than 12 months before it was sold. The amount of an asset sale . Dec 11, 2017 - Short-term capital gains are taxed as ordinary income, which means your marginal tax rate will apply to your short-term gains as well. Meanwhile, long-term capital gains are taxed at one of three potential rates -- and all are much lower than the corresponding marginal tax rates. Jan 1, 2018 - Simple Summary. If an asset is held for one year or less, then sold for a gain, the short-term capital gain will be taxed at ordinary income tax rates. If an asset is held for more than one year, then sold for a gain, the long-term capital gain will be taxed at a maximum rate of 20%. All about long-term and short-term capital gains tax rates, including what triggers capital gains tax, how it's calculated, and 5 ways to cut your tax bill. Jan 23, 2018 - Long-term capital gains are taxed at a lower rate than short-term gains. In a hot stock market, the difference can be significant. Mar 13, 2018 - Generally, if you hold the asset for more than one year before you dispose of it, your capital gain or loss is long-term. If you hold it one year or . Apr 16, 2018 - The new tax law maintains the status quo for taxes on long-term capital gains (LTCGs) and qualified dividends, but the way it did so was . In the United States of America, individuals and corporations pay U.S. federal income tax on the . capital gains at the same rate as it taxes ordinary income. Long-term capital gains are taxed at lower rates shown in the table below. (Qualified . Not all capital gains are treated equally. The tax rate can vary dramatically between short-term and long-term gains. Generating gains in a retirement account, .