Short-term capital gain<\/strong> is the profit gained from the sale of a property that was owned for less than one year. Short-term capital gains are taxed at normal income tax rates.<\/p>\n While capital gain refers to any profit gained from selling property, short-term capital gain refers to profit that comes from the sale of a property that has only been in the seller\u2019s possession for less than one year.<\/p>\n Short-term capital gain is calculated by subtracting the price initially paid for the property from the amount received upon selling it. If the net total of the short-term capital gain indicates profit, then that amount will be taxed at the taxpayer\u2019s ordinary income tax level.<\/p>\n The capital gains tax<\/a> rates for single filers and married couples are different. And short-term capital gains tax rates are higher than long term capital gains<\/a> tax rates.<\/p>\nExplanation<\/h2>\n