LTCG
Business & Finance abbreviation · Tax
| Stands for | Long-term capital gain |
|---|---|
| Categories | Business & Finance |
LTCG stands for Long-term capital gain, a tax abbreviation.
Profit from selling an investment or other capital asset held more than one year, taxed at preferential federal rates of 0%, 15% or 20% depending on taxable income. Gains on assets held a year or less are short-term (STCG) and taxed as ordinary income.
Example: I waited two extra weeks to sell so the profit would count as an LTCG.
Usage notes
Collectibles such as art and coins face a 28% maximum rate, and depreciation recapture on real estate up to 25%. The 3.8% net investment income tax can apply on top for high earners. Inherited assets are automatically treated as long-term, however briefly the heir has held them.
Related abbreviations
More tax abbreviations
- ITC – Input tax credit
- ITIN – Individual Taxpayer Identification Number
- ITR – Income tax return
- K-1 – Schedule K-1
- LIHTC – Low-Income Housing Tax Credit
- LLC – Lifetime Learning Credit
- MACRS – Modified Accelerated Cost Recovery System
- MAGI – Modified adjusted gross income
- MFJ – Married filing jointly
- MFS – Married filing separately
- MTD – Making Tax Digital
- NI – National Insurance