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.

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References in periodicals archive

stock fund, which they had bought several years ago for $35,000, generating a $15,000 long-term capital gain in a taxable account.

Using the 0% tax rate

The dividend will be paid on March 29, 2018 on the shares of the Company's common stock outstanding as of the record date of March 22, 2018 and will be reported as a long-term capital gain for 2018.

OFS Capital declares special dividend of 37c per share

Capital gain rate differential adjustment of long-term capital gain

Adjustments of foreign capital gains and losses for the foreign tax credit

All or part of the distribution may be treated as long-term capital gain or qualified dividend income (or a combination of both).

Bancroft Fund announces USD0.52 per share distribution

Net long-term capital gain (loss) 38,901,937 638,164

Table 6. Domestic limited liability companies: selected items for selected industrial groups, 2008

If you sold that stock, you'd have an $800 long-term capital gain and owe $120 to the Ins, at a 15% tax rate.

Year-end tax tips: as 2006 winds down, here's how to best minimize next year's tax jolt

A new trend has been identified in the buy-to-let market whereby investors put down a high deposit hoping for a long-term capital gain.

More faith in bricks and mortar than funds

Instead of receiving the $60,000 profits as a cash dividend, H sells all the stock for $160,000, realizing a long-term capital gain of $60,000 ($160,000 price--$100,000 adjusted basis).

Tax strategies for tax-advantaged dividends and capital gains