Capital gains (short- and long-term)

When you sell a security for more than you paid for it (for more than its cost basis), the difference is a realized capital gain, subject to taxation if it occurs in a taxable account. If you sell shares within a year of acquiring them, it’s a short-term capital gain. If you sell after a year, it’s a long-term capital gain. Depending on your annual income, long-term capital gains are currently taxed at 0%, 15%, and 20% rates. Short-term capital gains rates range from 10%–37%.