Short-term Capital Gains: Know When The Clock Starts Ticking


What difference does one day make? A lot if you’re selling stock or other capital assets at a profit.

Different kinds of income can be taxed at different rates. The rate you pay on your salary or self-employment income may differ from the rate you pay on the profit you receive from selling stock or other investments, also known as capital gains.

Capital gains are generally taxed at a lower rate than ordinary income — but not all capital gains are treated equally. The federal tax rate can vary widely between short-term and long-term gains.

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