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.
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