Definition: A gain classified as short-term under tax holding-period rules; for most capital assets, a holding period of one year or less generally produces short-term classification.
Example
An investor sells a capital asset at a gain after holding it for six months.
Keep the distinction clear
Short-term classification affects tax treatment and differs from how quickly a sale closes. Some acquisitions and asset categories have special holding-period or tax rules.
Related terms
Capital Gain · Capital Asset · Adjusted Basis
Keep studying
References: IRS Topic 409: capital gains and losses
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