<P> In the United States of America , individuals and corporations pay U.S. federal income tax on the net total of all their capital gains . The tax rate depends on both the investor 's tax bracket and the amount of time the investment was held . Short - term capital gains are taxed at the investor 's ordinary income tax rate and are defined as investments held for a year or less before being sold . Long - term capital gains , on dispositions of assets held for more than one year , are taxed at a lower rate . </P>
<P> In the United States of America , individuals and corporations pay U.S. federal income tax on the net total of all their capital gains . The tax rate depends on both the investor 's tax bracket and the amount of time the investment was held . Short - term capital gains are taxed at the investor 's ordinary income tax rate and are defined as investments held for a year or less before being sold . Long - term capital gains , on dispositions of assets held for more than one year , are taxed at a lower rate . </P>
when do short term capital gains become long term
when do short term capital gains become long term
held for more than one year
held for more than one year