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 paid on profits realized by selling a position held for longer than one year. For example, if someone buys a stock or bond and sells it five years later for more than what he/she paid, that person is assessed the capital gains tax. In the United States, capital gains taxes are lower than regular income taxes. This is because the government wishes to encourage long-term investment. It is important to note that the capital gains tax is only assessed on long-term capital gains, not on short-term capital gains. See also: Long-term capital loss.

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.

Capital gains tax (CGT).

A capital gains tax is due on profits you realize on the sale of a capital asset, such as stock, bonds, or real estate.

Long-term gains, on assets you own more than a year, are taxed at a lower rate than ordinary income while short-term gains are taxed at your regular rate.

The long-term capital gains tax rates on most investments is 15% for anyone whose marginal federal tax rate is 25% or higher, and 5% for anyone whose marginal rate is 10% or 15%. There are some exceptions. For example, long-term gains on collectibles are taxed at 28%.

You are exempt from 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 gains tax

a TAX on the surplus obtained from the sale of an ASSET for more than was originally paid for it.

In the UK, CAPITAL GAINS tax for business assets is based (as at 2005/06) on a sliding scale, from 40% on gains from assets held for under one year to 10% on gains realised after 4 years. For persons, capital gains on ‘chargeable'assets (e.g. shares) up to £8,500 per year are exempt from tax; above this they are taxed at 40%.

capital gains tax

a TAX on the surplus obtained from the sale of an ASSET for more than was originally paid for it. In the UK, CAPITAL GAINS tax for business assets is based (as at 2005/06) on a sliding scale, falling from 40% on gains from assets held for under one year to 10% on gains realised after four years. For persons, capital gains on chargeable’ assets (e.g. shares) up to £8,500 per year are exempt from tax; above this they are taxed at 40%.
References in periodicals archive ?
Beginning with Chamley (1986), we have already seen in the introduction that a single capital levy at date 0, if feasible, allows the economy to achieve first-best allocations.
Absent an instrument that allows households to borrow from the government, the government cannot carry the proceeds from a large initial tax to future periods, and the single capital levy prescribed in Chamley (1986) cannot be implemented.
A capital levy is attractive to a government that attaches a high discount rate to revenues obtained in the future, or one that expects to be short-lived without the levy.
However, a capital levy strategy is time-inconsistent: it yields more revenue (in present value terms) than steady inflation only if levies are greater than expected.
While this is above average for a FL school district, it is offset by the district's moderate capital needs and additional financial flexibility from not using any portion of the capital levy for general fund maintenance purposes.
Financial constraints were imposed by a voter referendum in fiscal 2009 that reduced the maximum combined operating and capital levy to the then existing rate, thus reducing future financial flexibility.
Although audited financial results exhibited declines in the past few years in a property tax authorization cycle common to most Ohio school districts, the approval of an operating levy in November 2004 and a capital levy in November 2005 should improve the district's fiscal position for the next several years.
The Positive Outlook reflects improved financial performance achieved despite the periodic need to seek additional voter-approved levies, strong internal funding of the capital program, and reduced reliance on debt given capital levy passage.