What is Capital Gains Tax? | SIE, SERIES7, SERIES65 Exam Prep

Capital gains tax is a tax on the profit from selling investments or assets. Short-term gains (assets held less than 1 year) are taxed as ordinary income; long-term gains (held more than 1 year) receive preferential rates of 0%, 15%, or 20% based on income. 📚 Learn more about Capital Gains Tax and other key terms for your SIE, SERIES7, SERIES65 exam at Open Exam Prep. 🎯 This term appears on: SIE, SERIES7, SERIES65 🔗 Full glossary: https://www.open-exam-prep.com/glossary 🔗 Capital Gains Tax definition: https://www.open-exam-prep.com/glossary/capital-gains-tax 💡 Exam Tip: Short-term (1 year or less) = ordinary income rates. Long-term (more than 1 year) = 0%, 15%, or 20%. NIIT adds 3.8% for high earners. Wash sale = 30 days. --- #securities #examprep #financeexam #sie #series7 #series65