Business, Legal & Accounting Glossary
A long period of time, as for a bond (e.g. 10 or more years) or for a buy and hold investment strategy.
Long term. Under Federal tax code, capital gains are eligible for the special 15% tax rate if the property was owned for more than one year. If the time of ownership was less than one year, gains are taxed as short-term capital gains at ordinary income tax rates.
Capital losses can be deducted from their in-kind capital gains. Long-term losses reduced long-term gains; short-term losses reduce short-term gains.
If long-term losses exceed gains, up to $3000 per year may be deducted from ordinary income. Any excess over $3000 may be treated as a capital loss carry over and deducted from future years income until the total loss has been fully deducted.
Capital loss
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This glossary post was last updated: 20th November, 2021 | 0 Views.