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What is the Difference Between Long Term and Short Term Capital Gain/Loss?

A Long Term Capital Gain/Loss occurs if an investment is bought and eventually sold for a gain/loss after holding it for more than one full year.

A Short Term Capital Gain/Loss occurs if an investment is bought and eventually sold for a gain/loss after holding it for less than a full year.

These are important factors to consider in investing when it comes to calculating taxes. There are very complex IRS rules governing these areas which a Financial Advisor can provide more information on.


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