Hafar1014
Diamond Member
- Sep 1, 2010
- 12,589
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You have to hold a stock fir one year to pay long term capital gainsCurious, can you explain how it hits your taxes...
i think I can guess.. but if you really know.
Each transaction taxed?
- Long-term capital gains — that is, on assets held for a year or longer — are taxed at a 0%, 15% or 20% rate, depending on your total taxable income for the year. Those rates are in effect for the 2024, 2025 and 2026 tax years.
- Short-term capital gains — for assets held less than a year — are taxed at your ordinary income tax rate, which can be much higher than the long-term capital gains tax rate.
Day trading drives up your income and puts you in a higher tax rate for all income