Does the amuont of time that a stock is held have any effect on the taxes you pay when it is sold?

Question

If you where to hold on to any stock for ten years, and then sold that stock do you pay less tax on the money that was made on the sale of that stock?

Answer 1

The magic number is 1 year. Stocks (or any asset) held for one year or less are taxed as short term capital gains at your marginal rate. Over one year they're taxed as lonng term capital gains at a lower rate, normally 15%.