Short-term capital gain


Also found in: Acronyms.

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 ?
Because the basis of a partnership interest cannot be segregated to a portion of an interest, basis in the portion of a partnership interest with a long-term holding period could reduce gain attributable to the portion of a partnership interest with a short-term holding period in situations where such interest was recently received in exchange for contributed short-term capital gain property.
Based on this analysis, unless the trust's or estate's governing instrument provides otherwise (or applicable local law deviates from the RUPIA with respect to RIC distributions), short-term capital gain distributions from a RIC to a trust or estate should retain their character as capital gain and thus be allocated to corpus.
In such a case, distributions of short-term capital gain from a RIC would constitute ordinary income distributions which the RUPIA provides should be treated as accounting income.
In the absence of specific provisions in the governing instrument, local law determines how short-term capital gains are treated.
For Federal income tax purposes, approximately 84% of the 2006 distributions will be taxable at long-term capital gains rates (including qualified dividend income), 7% will reported as net short-term capital gains and 9% will be reported as ordinary income.
For Federal income tax purposes, approximately 76% of the distributions will be taxable at long-term capital gains rates (including qualified dividend income), 19% will be reported as net short-term capital gains and 5% will be reported as ordinary income.
For Federal income tax purposes, approximately 87% of the 2006 distributions will be taxable at long-term capital gains rates (including qualified dividend income) and 13% will reported as net short-term capital gains.
51 per share of which is short-term capital gains, and $2.
0773 per share, 41% represents short-term capital gains and 10% represents long-term capital gains.
1244 per share, short-term capital gains is the source of approximately 31% of your regular monthly aggregate distributions and 5% represents long-term capital gain distributions.