If you have recently sold an asset that you have owned for a time period of greater than 1 year, you have what is called a “long-term capital gain or loss.” If you would have sold an asset and received a gain or loss on the sale for a period less than one year you have a short-term capital gain/loss.
The tax rate according to the IRS website for a long-term capital gain is generally no more than 15%. However, there a few exceptions:
- Tax rate is 0% for a part or all of the gain if the taxpayer’s tax bracket is 10%-15%.
- 20% tax rate on the capital gain if taxable income exceeds 39.6% ordinary tax rate.
- Tax rates can be greater than 15% if selling 1202 qualified small business stock (up to 28%), selling collectibles (up to 28%), and any unrecaptured section 1250 real property (up to 25%).