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I'd say you've got it opposite. By default capital gains are taxed at the capital gains rate, but if you don't hold the assets long enough you get the short ter
by colinmhayes 6y ago
I'd say you've got it opposite. By default capital gains are taxed at the capital gains rate, but if you don't hold the assets long enough you get the short term capital gains rate which is normal income tax.
- Taniwha 6y agoMostly I was trying to explain US tax law to non-USAians ... but in general you need to lock in your investment in a way that the IRS can tell that you meet the long term holding requirements (often your broker will do that for you in your 1099 these days if you're dealing in shares)
- bjtitus 6y agoExactly, this is backed up by individual income stats on short term and long term capital gains: https://www.irs.gov/statistics/soi-tax-stats-sales-of-capita https://www.irs.gov/statistics/soi-tax-stats-sales-of-capita... It routinely shows >7x long term vs. short term capital gains.