Question

I have a question about how to differentiate a capital gain short term from a capital gain long term. How do I know if a capital loss or gain is short- or long-term?

Answer

Regarding the difference between a capital gain short term and a capital gain long term, a short-term gain or loss occurs when you sell property that you owned for one year or less.

A long-term gain or loss involves property you’ve held for longer than one year.

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