Long-term capital gain

(redirected from Long-Term Capital Gains)

Long-term capital gain

A profit on the sale of a security or mutual fund share that has been held for more than one year.

Long-Term Capital Gain

The profit one realizes by selling a position one has held for longer than one year. For example, if one buys a stock or bond and sells it five years later for more than what one paid, this is considered a long-term capital gain. The government wishes to encourage long-term investment, and as such, long-term capital gains are usually entitled to preferential treatment for tax purposes; that is, they are taxed at a lower rate than most other income. See also: Long-term capital loss.

Long-term capital gain (or loss).

When you sell a capital asset that you have owned for more than a year at a higher price than you paid to buy it, any profit on the sale is considered a long-term capital gain.

If you sell for less than you paid to purchase the asset, you have a long-term capital loss.

Unlike short-term gains, which are taxed at your income tax rate, most long-term gains on most investments, including real estate and securities, are taxed at rates lower than the rates on ordinary income. Currently, those rates are 15% if you're in the 25% tax bracket or higher, and 5% if you are in the 10% or 15% bracket.

You can deduct your long-term losses from your long-term gains, and your short-term losses from your short-term gains, to reduce the amount on which potential tax may be due. You may also be able to deduct up to $3,000 in accumulated long-term losses from your ordinary income and carry forward losses you can't use in one tax year to deduct in the next tax year.

long-term capital gain

A gain on the sale of an asset held for more than one year.Currently longterm capital gains enjoy reduced tax rates over those imposed on short-term capital gains.

References in periodicals archive ?
39 (thirty-nine cents) per share, and an annual distribution from realized long-term capital gains in the amount of $0.
The Taxpayer Relief Act of 1997 (TRA '97) created a new category of five-year long-term capital gains, effective Jan.
On liquidation, the distribution of the after-tax net proceeds to the shareholders will trigger a gain, resulting in a shareholder-level tax at a Federal long-term capital gains rate.
83-7(b)(2), but chose to ignore the regulation based on their mistaken belief that that the regulation was invalid--Henry asserted that he (1) acted in good faith and reasonably relied on the advice of his accountant in reporting the option proceeds as long-term capital gains and (2) did not know nor should have known of Regs.
Previously, long-term capital gains were taxed at a maximum rate of 28%; under the new law, the rate is reduced to 20% (10% if the taxpayer s marginal tax rate is 15%).
Thus, the RUPIA does not distinguish between long-term capital gains and short-term capital gains.
The Fund estimates that virtually all of the income declared by the Fund in calendar year 2006 will be considered qualifying dividend income, subject to taxation at long-term capital gains rates no greater than 15%.
E would realize long-term capital gains taxed at a rate of only 28% if he sells the stock after the requisite holding period (two years from the date of the grant of the ISO or one year from the date of its exercise).
Long-term capital gains, qualified dividend income, ordinary income, and paid-in capital, if any, will be allocated on a pro-rata basis to all distributions to common shareholders for the year.
BOSTON -- On December 11, 2006 the AEW Real Estate Income Fund (the "Fund"), which is listed on the American Stock Exchange under the symbol "RIF," announced a distribution of long-term capital gains of $0.
BOSTON -- The AEW Real Estate Income Fund (the "Fund"), which is listed on the American Stock Exchange under the symbol "RIF," today announced a distribution of long-term capital gains of $0.
12 per share and long-term capital gains of $193,942, equal to $0.

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