### Comment:
Short term capital gains (assets held &lt; 1 year) are taxed as regular income— a max of 37% for the highest earners. Long term capital gains (assets held &gt; 1 year) are taxed at a special rate based on your income, capped at 20%. Short term capital losses can be used to offset short term capital gains, so if you make $100 in STCG and lose $100 in STCL, you don’t pay tax on the $100 gains since your net is zero. Same concept applies for LTCG and LTCL.

### REPLY:
Actualllyyyyy..... So **short**\-**term losses** are first deducted against **short**\-**term gains**, and **long**\-**term losses** are deducted against **long**\-**term gains**. Net **losses** of either type **can** then be deducted against the other kind of **gain**.

### END.