GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

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Short-Term Capital Gain


Synonyms:near term capital gains
Acronyms &
abbreviations:
STCG
Filed Under: financial-banking, investments
Tags: accounting, taxes
 

Definition of short-term capital gain (STCG)

short-term capital gain (STCG)
1. An individual's profit from the sale of a capital asset that is held for one year or less.

Related Terms and Acronyms:

  • asset   Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others including bank accounts, stocks, mutual funds, and so on.
  • capital   Money that is used to make money; for example, to buy rental property or a business.
  • capital assets   Items that you own for investment or personal purposes, such as stocks, bonds or stamp collections. When you sell a capital asset, depending on the price you earn a capital gain or a capital loss. Gains are taxed at a special rate, and losses can be used in many cases to reduce the amount that is taxed. See also "Capital Gain" or "Capital Loss."
  • capital gain (CG)   The profit made by the seller when real estate or other capital assets are sold. Capital gains are taxed more favourably than earned income. However, this can be dependent on your tax bracket and the length of time you owned the asset before it was sold. You could pay approximately one-third to one-half less tax than you would pay on the same amount of earned salary.
  • capital gains tax (CGT)   A tax on profits from the sale of real estate or investments.
  • long term capital gain (LTCG)   Your loss from the sale of a capital asset that you held for more than 12 months.
  • long-term capital loss   Your profit from the sale of a capital asset that you held for more than 12 months.
  • short-term capital loss   Your loss from the sale of a capital asset that you held for one year or less.

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