Definition: A gain classified as long-term under the applicable tax holding-period rules; for most capital assets, this generally requires holding the asset for more than one year.
Example
An investor sells a capital asset after a qualifying holding period longer than one year at a gain.
Keep the distinction clear
Long-term classification does not mean every dollar has the same tax rate. Depreciation-related rules, asset type, and exclusions can change treatment.
Related terms
Capital Gain · Capital Asset · Adjusted Basis
Keep studying
References: IRS Topic 409: capital gains and losses
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