FAQs
Long-term capital gains apply to assets held for more than one year and are taxed at preferential rates of 0%, 15%, or 20%, depending on your taxable income. For US taxpayers, choosing the right holding period is one of the most impactful ways to reduce tax liability on investment profits.
For 2026, the long-term capital gains tax rates for US taxpayers are 0%, 15%, and 20%, depending on taxable income. Single filers with taxable income up to approximately $47,025 pay 0%. Always verify brackets with the IRS or a tax professional for your specific situation.
There are several legal strategies US taxpayers use to reduce capital gains tax. Holding assets for more than one year qualifies gains for lower long-term rates. Investing through tax-advantaged accounts like IRAs or 401(k)s shelters gains entirely. Tax-loss harvesting offsets gains with losses. A Section 1031 exchange defers gains on real estate. Donating appreciated assets to charity eliminates the gain and provides a deduction. Each strategy has specific rules, so consulting a qualified tax professional like the team at Tranzesta is essential.
Yes. The IRS treats cryptocurrency as property, not currency, meaning every taxable event — including selling, trading, or using crypto to pay for goods — triggers a capital gain or loss. Long-term gains held over one year qualify for the 0%, 15%, or 20% preferential rates. In 2026, expanded broker reporting requirements make accurate crypto record-keeping more important than ever for US taxpayers.
The Net Investment Income Tax (NIIT) is a 3.8% surtax that applies to investment income — including capital gains — for US taxpayers whose modified adjusted gross income (MAGI) exceeds $200,000 for single filers or $250,000 for married filing jointly. It applies to both short-term and long-term capital gains.