Long-Term Capital GainsIf the date of the sale is more than one year (366 days or more) after the date of the purchase, you have a long-term capital gain.
The gain realized from selling a long-term holding is taxed at a lower rate than short-term gains. Long-term capital gains are taxed at 15% for all tax brackets other than 10% and 15% which pay an even lower long-term rate of 5%. Therefore, when figuring your taxes for the year, each gain or loss must be classified as either short-term or long-term. Sadly, none of the trades listed on your broker provided 1099 will be identified as short- or long-term. That means it is up to you to do this manually, perhaps for hundreds of trades. Who has that kind of time? TradeLog™ allows you to import an entire year's worth of trades in minutes and run a simple, "IRS ready" short-term and long-term Gains and Losses report. Please note: This information is provided only as a general guide and is not to be taken as official IRS instructions. Armen Computing Ltd. does not make investment recommendations nor provide financial, tax or legal advice. You are solely responsible for your investment and tax reporting decisions. Please consult your tax advisor or accountant to discuss your specific situation. |