Gains from the sale of certain assets owned for more than one year and inherited assets such as stocks, bonds and real estate enjoy a special tax treatment referred to as a long-term capital gain. Gains from assets held for a shorter period are called short-term capital gains and do not enjoy that special tax treatment. For 2008 through 2010, long-term gains are generally taxed at 0% to the extent a taxpayer is in the 15% or lower tax bracket and 15% for the balance. Note: Prior to 2008, the capital gains rate was 5% to the extent a taxpayer was in the 15% or lower tax bracket. There are some exceptions; to the extent that gain results from depreciation on real property claimed since May 1997 (such as the example used in basis), the tax rate is 25%, except to the extent the taxpayer is in the 10% or 15% bracket, in which case those rates would then apply. Also, long-term gains from the sale of collectibles such as artwork, coins, stamps, etc., are taxed at 28%.