Long-Term Capital Gains Tax

Long-Term Capital Gains Tax is a tax on the profit you make from selling an asset, such as stocks or real estate, that you've held for more than one year. This tax is generally lower than the tax on short-term capital gains, which applies to assets held for a year or less. The idea is to encourage long-term investment. The rates can vary depending on your income level and the type of asset. It's essential to report these profits on your tax return since they can affect your overall tax liability.