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capital gains tax

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Capital gains tax
The tax levied on profits from the sale of capital assets. A long-term capital gain, which is achieved once an asset is held for at least 12 months, is taxed at a maximum rate of 20% (taxpayers in 28% tax bracket) and 10% (taxpayers in 15% tax bracket). Assets held for less than 12 months are taxed at regular income tax levels, and, since January 1, 2000, assets held for at least five years are taxed at 18% and 8%.

capital gains tax
The tax applicable to gains realized from the sale of capital assets, including stocks and bonds. The capital gains tax rate and holding period requirements are periodically changed by Congress. A favorable tax rate is generally applied to realized gains on assets that are sold following a holding period of over one year. Realized capital gains on assets held a year or less do not generally receive favorable tax treatment.

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In May 2006, the government eliminated the capital gains tax on publicly-traded stocks and bonds donated to charity.
The capital gains tax from the sale can be deferred until the replacement property is later disposed of.
amp;nbsp;   I am not very knowledgeable on taxes, but I believe the difference between ordinary income tax rate and capital gains tax rate for our corporation may be a 35% to 45% difference which will eat up a large part of the profit from the investment.
 
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