Short versus long

This discussion clarifies the difference between short-term and long-term capital gains, primarily based on the holding period of an asset. Generally, assets held for over three years are considered long-term, while those held for less are short-term. Specific rules apply to shares and property, with shorter holding periods often qualifying for long-term gains. Indexation, which adjusts the purchase price for inflation, is also explained as a method to reduce taxable profit on long-term gains.