Long-term gains signify that an investor held on to an investment for more than a year.
Long-term Capital Gains get as low as 0% tax charge. At times it could be 15% or 20%. Long-term gains signify that an investor held on to an investment for more than a year.
The resulting benefit for such a long holding period is a favorable tax rate. The tax rate on the long-term capital gain is lesser.
Based on who is filing and the amount, the tax rate on long-term capital gains differs.
The benefit of long-term capital gains tax rate over short-term capital gain is simple; lesser tax charges.
