Short Term Capital Gains Tax

The short term capital gains tax is normally much higher than the long term capital gains tax. It is seen more as an income then as an investment.

In the us the short term capital gains tax goes hand in hand with the income tax. If your are currently in the 30% tax bracket you will have to pay 30% on your short term gains as well. However, short term gains will never be taxed at a higher rate than 35%.

Short term gains can be offset by short term losses as well. So the taxes do take into consideration that you can lose money too. Also if you are an active trader you can file your taxes as a trader and receive a few advantages and extra write-offs.

Of course the tax rules are constantly changing; because of this you must always consult your tax advisor before filing taxes on your short term gains.