Assets must be held for more than one year for the gain or loss to be considered long-term. A capital asset sold before it is owned more than a year results in short-term capital gain or lossshort-term capital gain/lossGain or loss on an asset held by the taxpayer for less than one year and a day.. A net short-term capital gain is treated as ordinary income for tax purposes. In calculating the holding period, the taxpayer excludes the date of acquisition and includes the date of disposition. Securities that are determined to be worthless are treated as if the security was sold on December 31.

To satisfy the long-term holding period requirement, a capital asset acquired on the last day of a month must not be disposed of before the first day of the thirteenth month following the month of purchase.