What Is a Short-Term Capital Gain?
A short-term capital gain is profit from selling an asset held for one year or less. In the United States, short-term gains are taxed as ordinary income at the taxpayer's regular income tax rates, which are generally higher than the rates applied to long-term capital gains.
Holding Period
The holding period usually starts the day after the asset is acquired and includes the day it is sold. Assets held more than one year produce long-term gains.
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🔗 Related Terms
More Taxes Terms
- Additional Medicare Tax
- Adjusted Gross Income (AGI)
- Alternative Minimum Tax (AMT)
- Capital Loss
- Child Tax Credit
- Cost Basis
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Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.