What is considered a long/short-term capital gain?
Short-term capital gains occur when there are sales of securities in a fund that are held for one year or less. For federal tax purposes, these gains are taxed as ordinary income. Short-term gains are taxed as ordinary income at your marginal tax rate ranging from 10% to 35% under federal income tax rules. Long-term capital gains occur when there are gains from the sale of securities that are held for more than 12 months. Long-term capital gains from sales will be taxed at 15% (0% if your top marginal rate is 10% or 15%) for taxable accounts.
