Short-term Capital Gain

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Short-term Capital Gain

About Short-term Capital Gain:

The Short-term Capital Gain (or loss) is the profit (or loss) realized from the sale of securities or other capital assets that were not held long enough to qualify for a long-term capital gain (loss). It is the gain or loss on the sale or exchange of a capital asset held for one year or less. Short-term gains and gains from collectibles are taxed at 12% on some States (like Massachusetts) Schedule B.

See also other Tax Terms and Definitions in U.S.A.

capital gain; capital loss.

Example of Short-term Capital Gain:

Learn more about tax examples, explanations and calculations here.

An investor sold land that was owned for 8 months at a $20,000 profit. The sale was the investor's only capital transaction that year, so the $20,000 short-term capital gain was added to ordinary income.

U.S. and other Developed Countries International Tax Meaning

Capital gain derived from the disposal of assets which have been held for a comparatively short period of time.

See also Capital Gain in the American Legal Encyclopedia and Capital Gain in the World Legal Encyclopedia.

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