You will pay capital gains tax on any asset that’s worth more when you sell than when you bought it. The length of time that you hold onto the asset will affect your capital gains tax rate. When you hold an asset for less than a year, you will be taxed at the short-term capital gains rate. Short-term capital gains are taxed at your ordinary income tax level. If you hold onto the asset for more than 1 year, or if you inherited the asset, you will pay the long-term capital gain rate which can be between 0% to 20%.