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 ?
This new program was added to the tax code to encourage economic development in low-income communities while providing tax deferment incentives for investors that have unrealized capital gains.
For example, if, in 2019, Fred had invested $10 of capital gain into the LLC and, in 2029, sells his LLC interest for $100, then Fred can elect to exclude that $90 of gain from his taxable income.
It may seem odd, but the income ranges long-term capital gains tax brackets look rather different than those for ordinary income and short-term gains.
Note: Before making these adjustments, taxpayers must reduce their foreign net capital gain by any amount they elect to include in investment income on line 4g of Form 4952, Investment Interest Expense Deduction.
Ed Garner of Maumelle sponsored a capital gains tax reduction (HB 1947) that passed the House with 29 Republican and 27 Democratic votes.
If you do not want to lock the entire proceeds in a residential property, you can invest the capital gain in specified bonds.
As a consequence of the upcoming increase in capital gains taxes, commercial real estate investors may seek to defer them through 1031 exchanges.
A major difference in the two computations is that capital gains realized on the sale of assets traditionally are not considered to be income for fiduciary accounting purposes [IRC Sec.
Even if it were to consider the agreement a capital asset, the court went on, Trantina would not be entitled to a refund because his receipt of payments pursuant to a contract did not constitute a sale; therefore, he was not entitled to receive capital gains.
Policy debates about the level and appropriateness of capital gains taxes almost always revolve around the long-term capital gains tax rate and the length of the requisite holding period.
When Congress reduced the capital gains rate from 20 to 15 percent, no change was made to the 25 percent depreciation recapture amount, despite protests from major real estate organizations.
He subsequently received an unsolicited offer for the second block, and claimed capital gain on the sale.