q.explain with illustration,difference between computation of short term & long term capital gains??

"explain with illustration,difference between computation of short term & long term capital gains??"
-----> In general capital gain is gain earned on capital assets, i.e., stocks, bonds, land, cars boats and other items held as investments or for personal use by a taxpayer. Capital gain from property held 12 months or less is deemed to be STCG and is taxed at ordinary income tax rates, up to 35% in 2010, just like regular ordinary income. For example, in 2010 you sell AT&T stock for $25,000 that you purchased nine months ago(less than 1 year) for $10,000. Your STCG is $15,000;$25,000-$10,000, original basis. And assume that your marginal tax rate is 28%, then your STCG tax liability is $15,000*28%=$4,200. However, capital gain from capital assets held for more than 12 months is deemed to be LTCG, long term CG, and is usually taxed at LTCG tax rates. For instance, in 2010, you sell AT&T stock for $25,000 and you bought the stock 5 years (5 years>1 year) ago for $10,000. Then your LTCG is $15,000; $25,000-$10,000=$15,000. And assume that your taxable income is $150,000 ( as single ) ,which puts you in 28% tax bracket. The tax on due on the LTCG’d be $2,250; $15,000*15%, NOT $4,200;$15,000*28%. You are able to reduce your CG tax liability by $1,950;$4,200-$2,250 as holding the stock for five years.
Currently, LTCG rates are 15% if you're in the 25% tax bracket or higher, and 0 % if you are in the 10% or 15% bracket, however, in 2011, LTCG rates ‘d be 20% if you’re in 25% tax bracket or higher, and 10%, NOT 0% if you are in the 10% or 15% marginal tax rate.
Please visit the Web site for further info.; take on the table “Capital Gains Taxation in the United States from 2003 forward” Capital gains tax in the United States - Wikipedia, the free encyclopedia

A capital gain is a profit that results from investments into a capital asset, such as stocks, bonds or real estate, which exceeds the purchase price. It is the difference between a higher selling price and a lower purchase price, resulting in a financial gain for the investor.[1] Conversely, a capital loss arises if the proceeds from the sale of a capital asset are less than the purchase price.
Capital gains may refer to "investment income" that arises in relation to real assets, such as property; financial assets, such as shares/stocks or bonds; and intangible assets such as goodwill.
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Earl Nunes

A capital gain is a profit that results from investments into a capital asset, such as stocks, bonds or real estate, which exceeds the purchase price. It is the difference between a higher selling price and a lower purchase price, resulting in a financial gain for the investor.[1] Conversely, a capital loss arises if the proceeds from the sale of a capital asset are less than the purchase price.
Capital gains may refer to "investment income" that arises in relation to real assets, such as property; financial assets, such as shares/stocks or bonds; and intangible assets such as goodwill.
Many countries impose a tax on capital gains of individuals or corporations, although relief may be available to exempt capital gains: in relation to holdings in certain assets such as significant common stock holdings, to provide incentives for entrepreneurship, or to compensate for the effects of inflation.
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Earl Nunes