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What Is Capital Gains Tax?

By Adam LevyUpdated Nov 7, 2024 at 2:12 PM

Key Points

  • Short-term capital gains are taxed as regular income; long-term gains after a year have lower rates.
  • States may have different tax rates for capital gains, some with preferential long-term rates.
  • Investment holding for over a year minimizes taxes, as do offsetting losses and charitable donations.

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