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January 21, 2022
Question

What is the capital gain % difference if sold after 2 years vs less

  • January 21, 2022
  • 3 replies
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3 replies

Employee
January 21, 2022

There is no difference. The tax liability difference is between one year and less. 

VolvoGirl
Employee
January 21, 2022

Or are you asking about a home sale?

January 21, 2022

Yes, a home in CA

January 21, 2022

for securities, where the sale is more than 1 year after the purchase and gain or loss is long-term for federal income tax purposes.  the rate is the same regardless of whether it was held two years or ten.  (business property is subject to depreciation recapture before capital gain rates kick in).  many states have different laws. for example, in Illinois, there is no distinction between long-term and short-term. other states have a sliding scale for the tax rate on capital gains depending on how long the security is held.