LONG TERM CAPITAL GAIN

[pzenanko]

ARE LONG TERM CAPITAL GAINS ONLY FOR STOCK?

[LoriLeighEA]

Welcome, pzenanko!

Short answer is no.

A capital gain occurs when you sell an asset for a price higher than it's basis.

If you hold an investment for more than a year before selling, your profit is considered a long-term gain and is taxed at a lower rate.

Capital assets are significant pieces of property such as homes, cars, investment properties. stocks, bonds and even collectibles or art.

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[marctu]

So, a long-term capital gain is the profit on the sale of an investment you've held for longer than a year.  So, the answer to your question is stock are not the only investment that can receive long-term capital gains treatment.  Although this is not an exhaustive list other investments can include bonds, mutual funds, exchange-traded funds, cryptocurrency, Section 1256 contracts, commodities, collectibles, and real estate.    

Thanks again for the question  @pzenanko 

All the best,

Marc 

Employee Tax Expert