Reply #6: There is difference between short term and long term [View All]

[BR_Parkway]

short term are for profits made on assets that are sold that have been held 6 months or less, long term is for assets held for more than 6 months. Those rates are applied only on those profits, it doesn't get added to your other income.

As for the lady with the house? If she didn't make over a $250,000 profit ($500,000 if she is married) then there is NO tax due, whether she bought another house or not. She needs to get another tax professional.