Long Term Versus Short Term Capital Gains

If you're an investor, you need to know the difference between long-term and short-term capital gains. So the IRS has actually incentivized people like me and you investors to hold assets for over a year. And if we do that and we sell that asset, we pay a tax on it. And that tax is on long-term capital gains. And for most investments, that's around 20%. However, if you do a short-term capital gain, so if you hold an investment for less than a year and sell it and made some money on it, that gain is taxed. It goes from 20% to 37%. In the highest tax bracket. However, if you sell that investment less than a year, you'll pay a 37% tax on that gain. So there's a big incentive for investors like me and you to hold assets for over a year. But I'm not a tax expert, but something to keep in mind.