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
- Read This Before You Retire
- Out of 12 Big Pharma Stocks, This is the 1 You Can Confidently Hold for the Next 10 Years
- Verizon, AT&T, T-Mobile or Sprint: Can You Guess Which is America's Favorite Wireless Brand?
- 3 Reasons Why The Walt Disney Company Is Brilliant
- 3D Printing Stocks: 3 Things Investors Can Learn From Congress Members' Stock Moves
- Before You Think About Investing in America's Oil Glut, Consider This...