Short Term Gain or Loss

[short-term geyn or los]

What is the definition of Short Term Gain or Loss?

This gain is subject to tax at the investor's ordinary income tax rate, rather than the lower long-term capital gains rate, which applies to investments held for more than a year. For tax purposes, the profit or loss realized from the sale of securities or other capital assets that were held for six months or less.

Using Short Term Gain or Loss in an Example

An investor purchased shares in a technology company and then sold them four months later for a higher price, realizing a short-term gain.

Using Short Term Gain or Loss in a sentence

During our portfolio review, we noticed a significant short-term loss due to rapid trading in volatile markets, impacting our overall investment strategy.

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