capital gain

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Related to Capital Profit: capital loss

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 ?
There was a decrease in the capital profit of the Group last year but it returned to the normal range of 17% in the first quarter of 2009.
The main objective is to make capital profits from purchasing emissions assets at appropriate prices.
The capital profits of Qalaa Holdings reached EGP 19.
Businesses will be entitled to tax exemptions, 100 per cent ownership and 100 per cent repatriation of capital profits.
NewRiver chief executive David Lockhart said: "With increasing demand from all of the major supermarket groups for convenience stores substantially outstripping supply, the portfolio provides a very attractive opportunity to generate capital profits through the conversion of the public houses into convenience stores underpinned by an attractive cash on equity return from a FTSE 250 company.
Maduro said his first steps would be to lower prices of certain goods and limit capital profits to 15 to 30 per cent of revenues.
The meeting also approved a draft agreement, between the governments of Qatar and Ireland, on the avoidance of double taxation and prevention of fiscal evasion with regard to taxes on income and on capital profits, and the draft protocol attached thereto and a draft of the First Executive Programme for the MOU on education between the governments of Qatar and Djibouti for the scholastic years 2012/2013, 2013/2014 and 2014/2015.
721 applies when a partnership's debt is contributed to the partnership in exchange for a capital profits interest in the partnership.
Here capital profits off of the crisis it has created and diverts attention from the causes of this crisis.
Summary: New York - The government has no intention to impose taxes on capital profits and money in the Egyptian bourse," Mohamed Abdel-Salam, head of the Egyptian bourse, told the official Middle East News Agency (MENA) on Tuesday.
In its compromise proposal, the Belgian Presidency proposed that the system should apply from 2015 onwards to eight categories of income and capital: earned income, incomes from attendance fees, dividends, capital profits, royalties, life insurance policies not covered by the directive on savings tax (which is still under negotiation), pensions, property and real estate income.
15/2010 ratifying the protocol for amending agreement on avoidance of double taxation and tax evasion for income tax and capital profits between the government of Sultanate of Oman and the UK of Great Britain and the Northern Ireland.

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