To minimize the effect of capital gains tax, an investment should be held for a duration that qualifies it as a long-term capital gain. Long-term capital gains typically benefit from a lower tax rate compared to short-term capital gains. The minimum duration for holding an investment to be considered a long-term capital gain is more than one year.
Given the options:
A. 6 months
B. 3 years
C. 366 days
D. 1.5 years
E. 2 years
Among these, 366 days is the smallest duration that exceeds one year by a day, thus making the investment qualify for long-term capital gains tax treatment.
Therefore, the correct answer is:
C. 366 days
