short-term capital gain or loss

short-term capital gain or loss

A gain or loss on the sale of real estate or other capital assets that were held for one year or less. Disregard advice that short-term capital gains are for holding periods of less than one year; a holding period of exactly one year is still short term.To calculate the holding period, start counting on the day following the date of acquisition; the day of sale is considered part of the holding period. Short-term capital gains are netted against short-term capital losses.If the net result is a gain,it is taxed at ordinary income rates,not the more favorable long-term capital gain rates.

References in periodicals archive ?
The net short-term capital gain or loss, on line 4d of Schedules K and K-1 (Form 1065 or 1120S);
Such gain or loss, if any, will generally be a short-term capital gain or loss.
Historically, practitioners have viewed partnership interests and S stock as capital assets and generally have treated their sale as resulting in long- or short-term capital gain or loss.
This division; is in the same proportions as the long- and short-term capital gain or loss that the distributee partner would have realized if his entire partnership interest were transferred in a fully taxable transaction immediately before the distribution.
If the IRS establishes that the single-category method has been used to convert a long-term capital gain or loss to a short-term one, or a short-term capital gain or loss to a long-term one, use of the method will be disallowed by Regs.