Top 10 Ways to Reduce Capital Gains Tax

7. Short- Term vs. Long-Term Capital Gains

Short-term capital gains are gains on assets you have held for less than a year. These gains are taxed at the same rate as ordinary income -- between 10 and 39.6%. Long-term capital gains are gains on assets that have been held for more than a year. The tax rate for long-term capital gains ranges between 0 and 20%. Where possible, sell your assets after a year of ownership to take advantage of the lower tax rate.

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