Tax Advantages On Deferring The Sale Of My Appreciated Capital Asset After Being Held For 11 Months?
I have held an appreciated capital asset for 11 months and I want to delay the sale of it. Do I gain a tax advantage in doing this? Or do I gain a tax advantage if I do not delay the sale?
Thanks!
3 Responses to “Tax Advantages On Deferring The Sale Of My Appreciated Capital Asset After Being Held For 11 Months?”
There are rare exceptions, but as a general rule:
If you sell it after a year and a day, then the gains are long-term gains, which are taxed at a low rate, or not at all.
If you sell it after 364 days, then the gains are short-term gains, which are taxed at a higher rate.
Delaying until after the one-year mark will reduce the taxes by at least 10% of the gain, and sometimes by 15% of the gain or more.
assets sold a year or less are considered short term gains, and taxed as ordinary income
one day over a year, they are long term gains and taxed at the capital gains tax rate(Sch d)
Hold it over a year and a day – that way it’ll get long term capital gains rates which are lower than short term rates.