Long-term capital gains refer to profits from selling an asset that has been held for more than one year, while short-term capital gains are profits from selling an asset that has been held for less than one year.

The tax rate for long-term capital gains varies depending on the individual's income. For the year 2023, long-term capital gains are taxed at 20% if the holding period is more than 24 months. Taxes for non-residents are 10 per cent (without indexation and without foreign exchange fluctuation benefit).

Short-term capital gains are taxed at the same rate as ordinary income.

Long-term capital gains receive preferential tax treatment as a means of incentivizing long-term investments. The idea is to reward investors who hold their assets for longer periods and thereby contribute to economic growth.

Yes, you can offset short-term capital gains with long-term capital losses to reduce your overall tax liability.

Yes, there are several exemptions and exclusions for long-term capital gains, including the home sale exclusion, the exclusion for gains from qualified small business stock, and the exclusion for gains from qualified opportunity zones.

If you sell an asset before the one-year mark, any profits you make will be considered short-term capital gains and taxed accordingly.

The holding period for determining long-term capital gains is one year or more.

Yes, you can defer paying taxes on long-term capital gains by reinvesting the profits in a qualified opportunity fund or using a 1031 exchange.

Capital gains are reported on Schedule D of your tax return. Long-term capital gains are reported in Part II, while short-term capital gains are reported in Part I.