capital gain


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Related to capital gain: Capital gain tax

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

In real estate and investments, the difference between the purchase price and the sale price when the sale price is more. That is, when an investor buys a security or real estate and sells it for a higher price, he/she incurs a capital gain. Capital gains in the United States are taxed at a lower rate than other income if the asset is held for longer than one year. One may use capital losses to offset capital gains to minimize one's liability for capital gains taxes; indeed, some investors do so deliberately. See also: Paper gain.

capital gain

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

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 surplus realized when an ASSET (house, SHARE, etc.) is sold at a higher price than was originally paid for it. However, because of INFLATION it is important to distinguish between NOMINAL VALUES and REAL VALUES. Thus what appears to be a large nominal gain may, after allowing for the effects of inflation, turn out to be a very small real gain. Furthermore, in an ongoing business, provision has to be made for the REPLACEMENT COST of assets, which can be much higher than the HISTORIC COST of these assets being sold. See CAPITAL GAINS TAX, CAPITAL LOSS, REVALUATION PROVISION, APPRECIATION, definition 1.

capital gain

the surplus realized when an ASSET (house, SHARE, etc.) is sold at a higher price than was originally paid for it. Because of INFLATION, however, it is important to distinguish between NOMINAL VALUES and REAL VALUES. Thus what appears to be a large nominal gain may, after allowing for the effects of inflation, turn out to be a very small real gain. Furthermore, in an ongoing business, provision has to be made for the REPLACEMENT COST of assets, which can be much higher than the HISTORIC COST of the assets being sold. See CAPITAL GAINS TAX, CAPITAL LOSS, REVALUATION PROVISION, APPRECIATION 2.

capital gain

The taxable gain recognized from the sale of a capital asset. It is the difference between the sale price of the property and the adjusted basis.Tax laws routinely offer preferential treatment for long-term capital gains on property held for a certain period of time before sale. Capital gains may be offset by capital losses.

Capital Gain

The gain from the sale or exchange of a capital asset.
References in periodicals archive ?
By continuing to exchange like-kind property, a property owner may conceivably defer capital gains taxes throughout their lifetime, regardless of how much their property appreciates in value.
You also might want to sell a few losers, for poorly performing assets can offset any capital gains you might have.
He subsequently received an unsolicited offer for the second block, and claimed capital gain on the sale.
Long-term capital gains taxed at a 28 percent top rate (gain on the sale of most collectibles and gain on the included portion of IRC Sec.
Under the agreement, that relief from capital gains taxes is good on any primary residence owned more than two years and it can be used whenever a residence is sold.
Director, Division of Taxation,(2) held that capital gains from stock sales may constitutionally be apportioned where the stated purpose for the stock acquisitions and divestitures was to expand existing operations and enter new businesses.
Under the prior regulations, T's $40,000 payment to B would have carried out the $30,000 dividends and interest, and $10,000 tax-free principal; C would have borne the tax on the $10,000 capital gain B received.
Instead of being taxed at ordinary rates on the entire gain, clients can be taxed at lower long-term capital gain rates on the land's appreciated value by engaging in the following tax plan:
Since its inception in 1991, turnover has been 1%-3% per year, and the fund has yet to make a capital gains distribution.
ME considered the raw land a capital asset at the time of its sale to TE and, thus, reported the sale proceeds as capital gain, which the IRS contested.
However, when the restrictions lapse in January 2007, Tim can sell the shares and recognize a long-term capital gain of $16 per share subject to the new tax rate of 15 percent.
When the buyer satisfies the seller's debt, Arrowsmith can produce a capital gain to the seller.