An investment must be owned over two years in order to qualify for 0 percent tax on capital gains.

Question

Quizplus · Accepted Answer

This statement is not true. In the United States, short-term capital gains (investments held for less than one year) are taxed at the investor's ordinary income tax rate, while long-term capital gains (investments held for more than one year) are taxed at a lower rate. However, there is no requirement for an investment to be owned for two years to qualify for the lower tax rate on capital gains. The specific holding period required for long-term capital gains varies depending on the asset class and the investor's tax bracket.

An Investment Must Be Owned Over Two Years in Order