Types of Capital Gains

Capital gains tax rates are determined by holding period for the investment. There are two types of capital gains holding periods, short-term and long-term:

1. Short-term: capital gains (or losses) from investments held for one year or less. Most short sales are considered short-term by the IRS even if held more than a year - see our topic on Short Sales.
2. Long-term: capital gains (or losses) from investments held for more than one year.

Let’s take a closer look the IRS capital gains tax treatment for both types.

Learn More... Short-Term Capital Gains

^{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.}

• Capital Gains
• Calculating Capital Gains
• Benefits to Active Traders
• Types of Capital Gains
• Short-Term Capital Gains
• Long-Term Capital Gains
• Short Sales
• Wash Sales
• IRS Schedule D
• Mark to Market
• Which Form to File?
• Brokerage Reporting
• Common Misconceptions
• Options
• Futures
• Mutual Funds
• Dividends