Short-Term Loss   DEFINITION of 'Short-Term Loss'  A capital
loss realized on the sale or exchange of a capital asset that
has been held for exactly one year or less. Net short-term
losses are limited to a maximum deduction of $3,000 per year,
which can be used against earned or other ordinary income.
BREAKING DOWN 'Short-Term Loss'  Short-term losses are
determined by calculating all short term gains and losses
declared on Part II of Schedule D. If the net figure is a loss,
then any amount above $3000 must be deferred until the following
year. For example, if a taxpayer has a net short-term capital
loss of $10,000, then he can declare a $3000 loss each year for
three years, deducting the final $1000 in the fourth year
following the sale of the assets.    1. Capital Loss    2.
Short-Term Gain      A capital gain realized by the sale or
exchange of a capital ...   3. Schedule D    4. Realized Loss
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