Sell a winning investment before you have held it a year and the gain is taxed as ordinary income. Hold just past a year and it becomes long-term, taxed at a much lower rate.
See how it works through one simple example.
A gain on something held one year or less is short-term, taxed like your salary, up around twenty four percent for many people.
Hold it just past a year and it becomes long-term, often taxed at only fifteen percent.
On a six thousand dollar gain, that timing alone can save about nine hundred dollars.
Slide to your number.
This is a rough guess. Connect your account to see your real number, down to the dollar.
A simple federal estimate to show the idea, not a tax filing. Real numbers depend on your full situation and current limits, which we confirm before you act.
Connect your account and we confirm your eligibility and the exact numbers.
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The honest version.
More than one year. One year and one day after purchase qualifies.
Often roughly half of the ordinary rate, depending on your income.
Yes, the holding period applies to stocks, funds, and most securities.
Connect an account or upload last year's return. No card to get your number.
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