Long-term capital gain

(redirected from Long-Term 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 ?
From our perspective as tax-managed equity managers, the most important proposal is one that calls for higher maximum rates on long-term gains and dividends.
Whether you're buying for a quick profit or long-term gains, a real estate truism is that you make money when you buy a property at a good price, not when you sell.
The same attention should be given in allocating expenses to short-term versus long-term gains.
Despite the hassles, most taxpayers are coming out ahead on capital gains, since the thrust of the law was to lower the maximum long-term gains rate to 20 percent from 28 percent.
For long-term gains and losses, a net loss from the 28% group (including long-term capital loss carryover) would offset any gains from the 25% group and, then, any from the 20% group.
Initial job losses will soon be offset by long-term gains.
By skewing the mix of fund returns to the types of returns with the lowest tax burden (tax-exempt income, qualified dividends, realized long-term gains and unrealized gains), they seek to reduce and defer shareholder taxes.
19 /PRNewswire/ -- There are very compelling tax reasons for holding on to your stock and bond investments until any gains can qualify as long-term gains, which are taxed at 15% rather than up to 35%.
The GOP plan includes a 50% tax-free deduction of net long-term gains for individuals and reduces the capital gains rate to 28% (from approximately 35%) for corporations," said Heck.
That fund's investors are more likely to aim for long-term gains and to worry less about year-to-year fluctuations that come with aggressive management.
He's still holding on to it in hopes of long-term gains.

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