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 ?
To the extent that the President is re-elected, he has indicated that he believes capital gains taxes should be at least 30 percent, and if we add the 3.8 percent healthcare increase, this would bring cap gains to 33.8 percent, a 125 percent increase.
Democratic committee members seemed unconvinced that lowering capital gains taxes would necessarily turn the state into a wealth magnet.
The effect of capital gains taxes with an exemption for owner-occupied housing Tables 2(a) and 2(b) show the long-term effects of capital gains taxes when the inflation rate is 2%, owner-occupied housing is exempt, and there is an elastic housing supply.
Most advisors will not think to use an IDGT when looking for solutions to capital gains taxes on appreciated asset.
Estimating the influence of personal capital gains taxes on equity prices is challenging because of both theoretical and empirical limitations, First, the theory struggles to provide adequate guidance and structure.
Two district court decisions occurred before the repeal of the General Utilities doctrine and allowed a reduction in value for potential capital gains taxes. In both of these decisions, the potential capital gains tax was included with other factors which reduced the value of the stock.
The NTS sees levying capital gains taxes as "appropriate" if one trades digital currencies for investment purposes and gains from that.
The Bush tax cuts set to expire on December 31, 2010, directly affecting how capital gains taxes will be taxed going forward.
Because of the jump in real estate prices, I've realized a nice return on my investment and I'm worried about paying huge capital gains taxes. Is there anything I can do to lower or avoid paying them?
The IRS disputed the reduction for capital gains taxes; the estate appealed.
For gift tax purposes, the taxpayer reduced the stock's value by 25% for a minority discount and by the capital gains taxes attributable to the built-in gain on the building.
For many years, the IRS has steadfastly held to the position that capital gains taxes on corporate level built-in gains cannot be taken into account for purposes of determining the transfer tax value of common stock in a closely held company.