Short Term Capital Gains Tax for Small Business Owners

Short Term Capital Gains Tax for Small Business Owners

So, what exactly is short-term capital gains tax? Simply put, it’s the tax you pay on the profit you make from selling certain assets, like stocks, real estate, or business assets, within a short period, typically one year or less. The key difference here is the holding period—short-term gains occur when you sell an asset relatively quickly after acquiring it.