The tax issues don't change because you've held an asset for Y years, it depends only on the date when you sell the asset. Remember that capital gains don't apply to assets that aren't sold -- this happens only when they're sold.
Any asset held for longer than a calendar year is taxed as long-term capital gains, otherwise short-term. And short-term capital gains are taxed the same as income.
I would have said that the tax issues DO change because you've held an asset for Y years: if Y >= 1 year then you are taxed at one rate and if Y < 1 year then you are taxed at a different rate.
Regardless, the tax consequences are now clear.
Fair enough, but my point is that you aren't taxed at all until you sell the asset. People who haven't invested much don't get that, and it's an argument in favor of buy & hold.