In real estate and tax law, a short term capital gain is the profit realized from the sale of a capital asset that was not held for the minimum period required to qualify as a long term capital gain. The holding period is defined by tax law and may vary depending on the asset.
Short term capital gains are typically taxed at ordinary income tax rates rather than the lower rates often applied to long term gains. As a result, the length of time a property is held can significantly affect the tax consequences of a sale.
