Taxes are sometimes considered after the fact, but capital gains can have big impacts on investment results. When making investing decisions take into account that different types of capital gains are taxed at different rates. Here we present the different types of capital gains, and considerations when taking future investment decisions.

Equities
Capital gains on equities are divided into long-term and short-term gains whether the investor has held the stock for more or less than one year. Long-term capital gains are taxed at a lower rate than short-term gains.
 
Bonds
Taxation on gains with bonds share some similarities and differences with stocks.
If an investor buys a bond at par value and holds it to maturity, there will be no capital gain on the transaction but if he sells before maturity and generates a profit from the bond, then there is a capital gain.