Short-term capital gain

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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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
(NYSE: SPE) has said that its board of directors has declared a year-end cash dividend of USD1.33 per share on its common stock consisting of USD0.86 of long term capital gains, USD0.27 of short term capital gains and USD0.20 of net investment income.
AllianceBernstein Income Fund Inc (NYSE:ACG) announced on Monday that it will pay a common stock one-time special income distribution of USD0.0910 per share; a long term capital gains distribution of USD0.0179 per share; and a short term capital gains distribution of USD0.0271 per share.
If the NRI sells the property before three years have elapsed since the date of purchase, short term capital gains tax at his or her tax slab is incurred.
To induce selling, buyers must compensate sellers through higher share prices for the incremental taxes associated with short term capital gains.
The board of directors of Special Opportunities Fund Inc (NYSE:SPE) approved a year-end common stock cash dividend of USD1.19 per share that consists of USD0.79 per share of long term capital gains, USD0.05 per share of short term capital gains and USD0.35 per share of net investment income, the fund reported on Friday.
Also, the fund is projecting to pay short term capital gains of USD0.41694 per share and long term capital gains of USD0.22917 per share, for a total distribution of the above mentioned amount.
Additionally, the fund announced a long term capital gains distribution of USD0.2124 per share and a short term capital gains distribution of USD0.0210 per share, both on its common stock that will also be paid on 16 January 2015 to stockholders of record at the close of business on 29 December 2014.
Closed-end diversified management investment company Special Opportunities Fund Inc (NYSE:SPE) reported on Friday that its board of directors approved a year-end stock dividend of USD1.48 per share, comprising of common stock consisting of USD1.00 of long term capital gains, USD0.29 of short term capital gains and USD0.19 of net investment income.
The distribution will be paid on 10 July 2014 and the cumulative distributions paid this fiscal year to date are from the following net investment income; net realised short term capital gains; net realised long term capital gains; and return of capital or other capital source.
As a result of this election the company's declared year-end stock common dividend of USD0.95 per share reflecting long term capital gains, short term capital gains and net investment income may be revised and may also include return of capital.
Apollo Senior Floating Rate Fund Inc (NYSE:AFT), an investor in floating rate senior loans and investments, declared on Friday, a special year-end common distribution of USD0.084 per share, paid from short term capital gains of about 22.9% and the remainder from net investment income of about 77.1%.