Short and long term capital gains
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Last updated 2:56 AM on 1/30/26
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7 Terms
1
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What counts as a short-term capital gain?
Assets sold within 12 months or less.
2
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How are short-term capital gains taxed?
100% of the gain is added to taxable income and taxed at your marginal tax rate.
3
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Why can CGT increase your tax bracket?
Because the gain increases your taxable income.
4
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What counts as a long-term capital gain?
Assets held for at least 12 months + 1 day.
5
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Who can access the CGT discount?
Individuals and trusts (not companies).
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What is the CGT discount?
A 50% discount on the capital gain before tax.
7
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How is long-term CGT calculated?
Halve the capital gain, add the discounted amount to taxable income, and taxed at your marginal rate.
Note 
Flashcards (23)