capital gain (redirected from Chargeable gains)

Capital Gain

An increase in the value of a capital asset (investment or real estate) that gives it a higher worth than the purchase price. The gain is not realized until the asset is sold. A capital gain may be short-term (one year or less) or long-term (more than one year), and must be claimed on income taxes.

Notes:

Long-term capital gains are usually taxed at a lower rate than regular income. This is done to encourage entrepreneurship and investment in the economy.

See also: Asset, Capital Loss, Real Estate, Return on Capital Gains

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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.

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capital gain

The amount by which proceeds from the sale of a capital asset exceed the cost basis.