06/16/2026
One day can change your tax rate by 20 percentage points.
Hold an asset for one year or less and the gain is taxed as ordinary income — up to 37%. Hold it more than one year and the rate drops to 0%, 15%, or 20% depending on your income.
On a $100,000 gain, that difference can be $20,000 in federal tax.
Swipe to see the brackets, what counts as a capital asset, and the moves that actually reduce the bill.
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Alexander Accountants CPAs | dbalexander.com