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 ?
At the initial equilibrium, capital taxes are present in all sectors of the Canadian and US economies, but characterized by a larger magnitude in the Finance & Insurance and Services & Retailing sectors in both countries.
Even in the absence of an instrument that allows government lending to households, we saw in the previous section that the optimal fiscal policy with commitment prescribes zero capital taxes in the long run.
Since very little revenue is collected from capital taxes, the GKSa formula implies a very low effective tax rate on new investment.
"By contrast in this year 2000, we estimate to raise not pounds 36m but pounds 536m in capital taxes, and about pounds 3 billion in corporation tax, moreover at a much reduced rate."
It allows banks to incorporate into their capital taxes they paid in the past for loan-loss reserves.
Thus, the government will also use environmental policy, which can affect the returns to capital, to minimize the distorting effects of the capital taxes.
The branch is subject to a branch tax in addition to the federal income and capital taxes. The branch tax is assessed in order to equate the tax position of companies carrying on business through a branch with those that are carrying on business through a subsidiary.
KUWAIT -- The Kuwaiti and Iraqi ministries of finance on Monday signed an agreement for avoiding double taxation and preventing financial evasion for income and capital taxes. (Issued at 13:58 local time or 10:58 GMT)
Thus, capital taxes decrease with both [phi] and [gamma], while labor taxes are increasing in these frictions.
Hosting the Secretary-General of Taxes comes as per the Economic Committee s study on avoidance of double taxation agreement on income and capital taxes between Oman and Germany, which was referred by the Council of Ministers to the Majlis in a bid to propose visions on it and view comments on the agreement.
"The new tax rate and the threat of higher capital taxes will trigger a round of owner manager sales and will be one of the key drivers of deals in 2010."
If you are non-domiciled for UK tax purposes there are significant capital taxes planning opportunities available.