Capital Gains tax applies if you have a profit when you sell a capital asset, which would include property such as: Stocks, Bonds, Mutual Fund Shares and Real Estate. Your tax rate for a capital gains tax is based on whether your gain was short term or long term.


Short-Term Gain: http://harborfi.typepad.com/tax/got-a-question-turbotax-i.html



A short term gain is when your holding period was less that a year. For example If you bought stock on May 4, 2008 your holding period would begin on May 5th. The end of your first year would be May 4, 2009. If you sold before or on that day it would be a short term gain


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