Long-term capital gain

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Long-term capital gain

A profit on the sale of a security or mutual fund share that has been held for more than one year.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Long-Term Capital Gain

The profit one realizes by selling a position one has held for longer than one year. For example, if one buys a stock or bond and sells it five years later for more than what one paid, this is considered a long-term capital gain. The government wishes to encourage long-term investment, and as such, long-term capital gains are usually entitled to preferential treatment for tax purposes; that is, they are taxed at a lower rate than most other income. See also: Long-term capital loss.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Long-term capital gain (or loss).

When you sell a capital asset that you have owned for more than a year at a higher price than you paid to buy it, any profit on the sale is considered a long-term capital gain.

If you sell for less than you paid to purchase the asset, you have a long-term capital loss.

Unlike short-term gains, which are taxed at your income tax rate, most long-term gains on most investments, including real estate and securities, are taxed at rates lower than the rates on ordinary income. Currently, those rates are 15% if you're in the 25% tax bracket or higher, and 5% if you are in the 10% or 15% bracket.

You can deduct your long-term losses from your long-term gains, and your short-term losses from your short-term gains, to reduce the amount on which potential tax may be due. You may also be able to deduct up to $3,000 in accumulated long-term losses from your ordinary income and carry forward losses you can't use in one tax year to deduct in the next tax year.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

long-term capital gain

A gain on the sale of an asset held for more than one year.Currently longterm capital gains enjoy reduced tax rates over those imposed on short-term capital gains.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
New Delhi: Finance Minister Arun Jaitley on Thursday proposed to tax long term capital gains exceeding Rs 1 lakh at the rate of 10 percent without allowing the benefit of any indexation.
Jaitley added that currently, Long Term Capital Gains arising from transfer of listed equity shares, units of equity oriented fund and unit of a business trust are exempt from tax.
The distribution intended by the fund will be equal its regularly monthly distribution amount mentioned above and all available net investment income and net short and long term capital gains, as required under the Internal Revenue Code of 1986, as amended.
It is able to make periodic distributions of long term capital gains. All or part of the distribution may be treated as long-term capital gain or qualified dividend income (or a combination of both).
The rates of capital gains tax from the sale of a real estate property depend on the duration for which the property was held Compared to equities, where the long-term capital gains is waived off after just one year of holding in case of real estate the long term capital gains of 20% after indexation is applicable when the holding period is more than three years.
Also, for many taxpayers who claimed the Chin lax Credit last year, the Treasury mailed checks as an advance payment of the credit's increase, The new tax law also lowered the tax rates for long term capital gains and qualifying dividends, allowing taxpayers to reduce their estimated tax payments for the year following May 2003.
PDT and HTD will pay monthly distributions of USD0.0975 and USD0.1380 per share, respectively and long term capital gains distributions of USD0.3000 and USD0.1639 per share, respectively.
Further, the company said that this dividend consists of short term and long term capital gains and also, shareholders with automatic reinvestment will receive their distribution in the form of additional shares at the closing prices on 23 December 2014, while others will receive their distribution by check, besides, the distributions do not affect the fund's total return.
The distribution will be paid on 10 July 2014 and the cumulative distributions paid this fiscal year to date are from the following net investment income; net realised short term capital gains; net realised long term capital gains; and return of capital or other capital source.
Special Opportunities Fund Inc (NYSE:SPE), a regulated investment company, elected to retain USD1m or USD0.1468 per common share of its realised long term capital gains for the year ending 31 December 2012, it declared on Monday.
(NYSE:MSD) released a quarterly dividend of USD0.14 per share; (NYSE:EDD) a dividend of USD0.30 per share for quarter; (NYSE:MAY) a dividend of USD0.130005 per share from net investment income and USD0.629326 per share from long term capital gains; and (NYSE:TTF) a dividend of USD0.130005 per share from net investment income and USD0.629326 per share from long term capital gains.

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