---
title: "Screen a capital gain for long-term or short-term treatment"
url: "https://ailawframework.com/practice/taxation/screen-a-capital-gain-for-the-cgt-discount/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A26-PE20261022-15-US"
practice_area: "Taxation"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Screen a capital gain for long-term or short-term treatment

> Count the holding period from the facts and mark the gain long-term only if the asset was held for more than one year.…

Canonical page: https://ailawframework.com/practice/taxation/screen-a-capital-gain-for-the-cgt-discount/united-states  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Taxation](https://ailawframework.com/practice/taxation.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | Count the holding period from the facts and mark the gain long-term only if the asset was held for more than one year. List any gift, inheritance, or other exception the lawyer must open in the publications Topic 409 names. |
| What the lawyer must review | There is no federal discount that removes a percentage of a capital gain the way the Australian CGT discount does. 26 U.S.C. § 1222 defines a short-term capital gain as gain from the sale or exchange of a capital asset held for not more than one year, and a long-term capital gain as gain from a capital asset held for more than one year, in each case to the extent the gain is taken into account in computing gross income. Topic 409 states the same holding-period line and says a lower rate may apply to a net capital gain than to ordinary income. For taxable years beginning in 2025, the topic says the rate on most net capital gain is no higher than 15 percent for most individuals, that a 0 percent rate applies below the income level the topic states, and that 20 percent applies to the extent taxable income exceeds the 15 percent threshold. Net short-term capital gain is taxed as ordinary income. Collectibles are taxed at a maximum 28 percent rate. |
| Written for | United States |
| Applies to | [Screen a capital gain for the CGT discount](https://ailawframework.com/practice/taxation/screen-a-capital-gain-for-the-cgt-discount.md) |

## Checking plan

- What the AI does: Count the holding period from the facts and mark the gain long-term only if the asset was held for more than one year. List any gift, inheritance, or other exception the lawyer must open in the publications Topic 409 names.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- Topic 409 points to Publication 544 for exceptions such as property acquired by gift or from a decedent. Do not apply the one-year line to those assets without that publication.
- The dollar thresholds for the 0, 15, and 20 percent bands are on Topic 409 and were not copied into this entry. Open the topic before quoting a threshold.

## Sources

- [Topic no. 409, Capital gains and losses](https://www.irs.gov/taxtopics/tc409) (checked 2026-10-22)
- [26 U.S. Code § 1222](https://www.law.cornell.edu/uscode/text/26/1222) (checked 2026-10-22)

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*