Short-term capital gain

(redirected from Short Term Capital Gains)

Short-term capital gain

A profit on the sale of a security or mutual fund share that has been held for one year or less. A short-term capital gain is taxed as ordinary income.

Short-Term Capital Gain

The gain one realizes by closing a position one has held for less than one year. For example, if one buys a stock or bond and sells it five months later for more than what one paid, the gain is considered a short-term capital gain. The government wishes to encourage long-term investment and, as such, short-term capital gains are usually not entitled to preferential treatment for tax purposes; that is, they are taxed at a higher rate than gains from long-term investments. See also: Short-term capital loss.
References in periodicals archive ?
Short term capital gains distributions are generally taxed at an investor's regular federal income tax rate which for individuals can range up to 35%.
1100 per share from short term capital gains and $0.