Short term. A capital gain from property owned less than one year is considered short term under the Federal tax code. Hence, the gain is not eligible for the special 15% tax rate given to long term capital gains. Instead, the gain is taxed at ordinary income tax rates.
Short term capital losses can be deducted from short term capital gains, but unlike long term capital losses, excess losses cannot be carried over for deduction from future years' income for tax purposes.
Related Fool Articles
- [link link title]
Recent Mentions on Fool.com
- Warren Buffett's Highest-Yielding Stocks
- 5 Secrets to Increasing the Profit of Your Rental
- Believe It or Not, This Wireless Carrier Has the Worst Nationwide Network
- Dividend Aristocrats: Time to Buy AbbVie Inc Stock?
- Activision?s ?Destiny? and the Business of Video Game Hype
- Seadrill Ltd. Revisited: Was Not Selling a Mistake?