Capital Gains Taxes Explained: Short-Term Capital Gains vs. Long-Term Capital Gains

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Capital Gains Taxes Explained: Short-Term Capital Gains vs. Long-Term Capital Gains

One of the main ways to profit from investing is to buy assets at one price and then sell them at a higher price. These types of profits are known as capital gains. As with most kinds of profits, they’re subject to taxes. There are two types of capital gains: short term and long term. Taxes can impact the growth of your portfolio, so it’s important to understand how capital gains taxes work and learn some strategies to use to potentially minimize them.

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