capital gains tax(redirected from capital levy)
Also found in: Dictionary, Thesaurus, Legal, Encyclopedia, Wikipedia.
Capital gains tax
Capital Gains Tax
capital gains tax
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 taxa 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%.