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 ?
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.
If the sale and purchase is accomplished to permit a rollover, the taxpayer must recognize the capital gain only up to the proceeds from the sale of the stock, minus the cost of any qualified small business stock purchased during the 60-day period (IRC section 1045[a]).
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.
Some might think that because the federal capital gains tax has been cut, these taxes aren't worth worrying about.
Rebalancing your portfolio before the end of the year is even more critical this year because the capital gains and dividend rates have been reduced to 15% for the four highest tax brackets and to 5% for the two lowest tax brackets.
Upon the subsequent sale of the remaining property, the portion that the taxpayer did not subdivide produced capital gain.
1(g)(3), if a child's unearned income included net capital gains and/or qualified dividends, it was allocated between the parent and the child (because, under Sec.
Long-term capital gains taxed at a 25 percent top rate (unrecaptured Sec.
In the past, homeowners who sold did not have to pay capital gains taxes if they reinvested their profits in a house of equal or greater value within two years.
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.
The actual sources of the Fund's distributions may be net investment income, net realized capital gains, return of capital or a combination of the foregoing and may be subject to retroactive recharacterization at the end of the Fund's fiscal year based on tax regulations.