Short-Term Loss is a tax term relating to loss realized from the sale or exchange of capital assets that have been held for less than some pre-defined minimum period of time (e.g. a year). The types of investment affected are usually securities or business property (buildings, machinery, land, natural resources, unharvested crops, livestock).
Additional meaning of Short-Term Loss:
Short-term losses are calculated by netting all short term gains and losses. 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. If the short-term loss is higher than that, the excess amount has to be deferred until the following year.