capital gain

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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 ?
A chargeable gain for CGT made on the disposal of an asset is, broadly speaking, the difference between its value at the time of disposal and the cost of acquiring the asset - effectively an investment's profit.
Bed-and-spouse" - the transfer of an asset between spouses does not normally create a chargeable gain (or loss) for CGT purposes.
This differential may reduce further in the future as additional increases in the capital gains tax rates have not been ruled out, but as it stands it will clearly be an important factor in investment strategies -notwithstanding the fact that chargeable gains on assets held in the medium to long term will include inflationary gains.
Had Graham sold the property on or before June 22, 2010 he would have paid CGT on the chargeable gain at 18 per cent (i.
The first pounds 8,500 of chargeable gains are free from capital gains tax for 2005/06 which represents pounds 3,400 of tax at 40 per cent.
Among key tax features, his report said REITs would be exempt from corporation tax on qualifying rental income and chargeable gains and be required to distribute at least 95 per cent of net taxable profits on rental income to investors.
Chargeable gains should be accurately calculated before any decision is made.
The Birmingham office of accountants BKR Haines Watts, says that new provisions introduced in chargeable gains tax legislation could significantly change the way groups of companies are taxed on disposals of subsidiaries.
In the past, groups of subsidiaries would have been required to prepare a calculation of the chargeable gain or loss arising on the disposal.
The first pounds 7,700 of chargeable gains are free from capital gains tax for 2002/03 which represents pounds 3,080 of tax at 40 per cent.
In addition there are sections, which apply only if you have the relevant source of income - for example, from employment, from self-employment, from property or from chargeable gains.
no chargeable gain or allowable loss will arise on the