Investing and Financial Markets
Stock Market

What are the tax rates on short term capital gains and long term capital gains for a student with no income but who has 10000 in the stock market?

Answer

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Wiki User
12/08/2008

There is no such animal as a short term capital gain or loss... When you hold the stock for a year or more it is treated as capital and the tax rate on your realized gains is (currently) 15%. If you sell out and had held for less than a year, your gain or loss is netted together with other ordinary income such as the pay you get from a regular job, and is subject to the same tax rates as for your regular paycheck.