Do I need to hold an investment for 18 months to benefit from the long term capital gains tax rate?
The tax laws provided two categories of long-term capital gains tax in 1997. The lowest rate applied for investments held more than 18 months. A higher rate applied for investments held more than 12 months, up to 18 months. In 1998 the law was changed. Now the single lower tax rate applies for any stocks held more than 12 months.
