What is the difference between short-term and long-term capital gains in PortfolioPilot's tax analysis?
Two tax categories that follow IRS rules:
- Short-term capital gains - profits from selling assets held for one year or less. Taxed as ordinary income at your regular federal tax bracket.
- Long-term capital gains - profits from selling assets held for more than one year. Taxed at preferential long-term rates that depend on your taxable income.
Tax Optimization distinguishes between short-term and long-term positions when identifying tax-loss harvesting opportunities - it prioritizes short-term losses first, since they offset short-term gains taxed at higher rates.
You can review your YTD realized gains in Transactions, which shows each transaction's holding period and gain/loss. Tax features are available on Gold and above.
