Where Are Long-term Versus Short-term Capital Gains?

If you purchase something and sell it for a profit you’ve created a GAIN.

The opposite creates a LOSS.

A GAIN outside of a retirement account is going to be taxed.

Depending upon your income level and how long you owned it before you sold it determines whether or not the gain is short-term or long-term.

Short-Term Means-
it was sold within a year of purchase for a profit.

Long-Term Means-
it was sold after you owned it for more than a year for profit.

For some people, long-term capital gains are tax-free. Others are subject to a preferential rate. Short-term gains are taxed as income.