Capital Gain

Personal Finance

A capital gain is the profit from selling a capital asset (stock, bond, real estate, business) for more than its cost basis. Short-term gains (held one year or less) are taxed at ordinary income rates (10-37%). Long-term gains (held more than one year) get preferential rates: 0%, 15%, or 20% depending on your taxable income. For 2026, the 0% rate extends up to $48,350 single / $96,700 married, making long-term holding extraordinarily tax-efficient at moderate income levels. Selling appreciated stock and immediately repurchasing creates no wash-sale problem (the rule only applies to losses).