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.