Net Capital Gains and Losses

The maximum tax rates for net capital gains are 0%, 15% and 20%. Short term capital gains are capital assets such as stocks or bonds held for one year or less and are taxed at ordinary income rates. Long-term capital gains are capital assets held for longer than one year before they are sold. The holding period begins the day after acquiring these assets and ends on the day of sale. Capital gains and losses are declared on Schedule D, Capital Gains and Losses.