What is the difference between “short-term” and “long-term” capital gains and losses?
Gains or losses on investments held for one year or less are considered short-term. Gains or losses on investments held more than one year are considered long-term. Capital gains distributed by mutual funds are generally considered short- or long-term based on how long the fund held its underlying securities, not how long you’ve owned fund shares. You must determine your own holding period when selling fund shares at a profit or loss.
