Editing Taxation in the United States (section)

==Capital gains tax==
[[File:Federal Capital Gains Tax Collections 1954-2009 history chart.pdf|upright=2.25|right|thumb|U.S. [[Capital gains tax|capital gains]] taxes history]]
{{Main|Capital gains tax in the United States}}

Individuals and corporations pay [[Income tax in the United States|U.S. federal income tax]] on the net total of all their [[capital gain]]s. The tax rate depends on both the investor's [[tax bracket#Tax brackets in the United States|tax bracket]] and the amount of time the investment was held. '''Short-term capital gains''' are taxed at the investor's [[ordinary income]] tax rate and are defined as investments held for a year or less before being sold. '''Long-term capital gains''', on dispositions of assets held for more than one year, are taxed at a lower rate.<ref>See subsection (h) of {{usc|26|1}}.</ref>