Short term

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.

Expanded Definition

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]

Related Terms

• Income tax
• Capital gain
• Long term

Recent Mentions on Fool.com

• Is Duke's New CEO Good for Duke Energy Stock?
• Has Marine Products Made You Any Real Money?
• Here's 1 Reason VCA Antech Looks Weak
• Is American Water Works's Cash Machine Slowing Down?
• 3 Reasons to Buy Stock Even Near All-Time Highs
• Long-Term Capital Gains and Tax Rates in 2013