Wednesday, October 14, 2026

Question: How long must you hold an investment for its gain to count as long-term?

Answer: More than one year. Long-term gains are taxed at federal rates of 0%, 15% or 20%, depending on income. Short-term gains are taxed like regular income, at rates up to 37%. The catch is the counting. The clock starts the day after the purchase, so a stock bought on March 10 has to be sold on March 11 of the next year or later.