[Verse 1] Your stocks and bonds, they're capital treasures Real estate and gems beyond all measures But inventory from your daily trade And business property don't make the grade Section twelve twenty-one defines the line Between what's capital and what's confined [Chorus] Hold it long, hold it strong, past a year you'll find Zero fifteen twenty rates for patient minds Three thousand loss, wash sale cross, don't buy back too soon Capital gains play different games beneath the taxing moon [Verse 2] Short-term profits face the highest bracket Like ordinary income, Uncle Sam will whack it But patient investors reap rewards so sweet Zero percent for those whose income's neat Fifteen percent for middle-class delight Twenty percent when wealth reaches new height [Chorus] Hold it long, hold it strong, past a year you'll find Zero fifteen twenty rates for patient minds Three thousand loss, wash sale cross, don't buy back too soon Capital gains play different games beneath the taxing moon [Bridge] Collectibles climb to twenty-eight percent Stamps and coins and art, their profits bent Unrecaptured depreciation hits twenty-five While QSBS exclusion keeps small business alive Section twelve-oh-two protects your qualifying stock Million dollar shelter from the taxman's knock [Verse 3] Thirty days before and thirty after Wash sale rule prevents tax disaster Losses vanish when you repurchase quick Adding basis to your newest pick Net your gains against your painful losses Three thousand yearly limit, that's what boss is [Final Chorus] Hold it long, hold it strong, past a year you'll find Zero fifteen twenty rates for patient minds Three thousand loss, wash sale cross, don't buy back too soon Capital gains play different games beneath the taxing moon [Outro] Section twelve twenty-one through twenty-two Capital asset rules will see you through
← 1 Basis and Amount Realized | 3 Recapture and Characterization →