Capital Gains & Losses
Short term stock gain - favorable lower capital gains tax rate?
Favorable lower capital gains tax rates are available if a portion of your Taxable Income consists of "Net Capital Gains". Net capital gains are your net LONG term capital gains in excess of net short term capital losses. Your short term stock gain would not qualify as a lomg term Net capital gain. The portion of the short term gains will be taxed as ordinary income at the tax bracket your taxable income falls in to.
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