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Capital Gain |
Also found in: Wikipedia, Hutchinson | 0.04 sec. |
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Capital gain When a stock is sold for a profit, the capital gain is the difference between the net sales price of the securities and their net cost, or original basis. If a stock is sold below cost, the difference is a capital loss.
Capital gain. When you sell an asset at a higher price than you paid for it, the difference is your capital gain. For example, if you buy 100 shares of stock for $20 a share and sell them for $30 a share, you realize a capital gain of $10 a share, or $1,000 in total. If you own the stock for more than a year before selling it, you have a long-term capital gain. If you hold the stock for less than a year, you have a short-term capital gain. Most long-term capital gains are taxed at a lower rate than your other income while short-term gains are taxed at your regular rate. There are some exceptions, such as gains on collectibles, which are taxed at 28%. The long-term capital gains tax rates are 15% for anyone whose marginal federal tax rate is 25% or higher, and 5% for anyone whose marginal rate is 10% or 15%. You are exempt from paying capital gains tax on profits of up to $250,000 on the sale of your primary home if you're single and up to $500,000 if you're married and file a joint return, provided you meet the requirements for this exemption. Capital Gain The gain from the sale or exchange of a capital asset. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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The federal government's Budget 2006 proposals to eliminate capital gains tax on donations of publicly-traded securities to public charities, has been welcomed whole heartily by the charitable sector. 643(b)-1 explains that it will respect state statutes that provide for a reasonable apportionment between the income and remainder beneficiaries of a trust's total return for the year, including ordinary and tax-exempt income, capital gains and appreciation. That's why the Section 1031 exchange, a method of protecting capital gains on real estate from unnecessary tax liability that was made popular by California property owners, is increasingly in favor here in New York as property values continue soaring. |
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