Schedule D Capital Gains and Losses
Long-term capital gains taxes are a tax on profits from the sale of an asset held for more than a year. The long-term capital gains tax rate is 0%, 15%, or 20%, depending on your taxable income and filing status. Long-term capital gains tax rates are typically lower than those for short-term capital gains.
This schedule is split between short-term and long-term gains.
Part I Short-Term Capital Gains and Losses - Generally Assets Held One Year or Less
Short-term gains are treated as ordinary income, meaning it's taxed at the income tax rate you fall into.
Part II Long-Term Capital Gains and Losses - Generally Assets Held One Year or Less
Long-term gains have a preferable tax treatment. This means you held onto the investment for at least a year before selling it. Typically, any gains are subject to a lower tax rate.
The gains are combined, and depending on the blend of short-term and long-term investments, they'll be treated differently.
If you have capital losses, you are limited to $3,000 per year. Any loss is carried forward for you to use in future tax years.
Part III Summary
The second page (Part III) provides a breakdown of how the IRS determines the taxability of mixed gains and losses.