How Are Capital Gains Taxed ?

Capital gains can be classified as short-term, long-term, or both. Capital gainsshort-term in nature, such as gains from securities held for less than one year, are treated as ordinary income. This is based on an individual's tax filing status, adjusted gross income, and tax filing status. Long-term capital gain, which are gains in securities that have been held for longer than one year, is usually subject to a lower tax rate than regular income.