Long-term capital gain

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Also found in: Acronyms.

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.

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.

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.

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.

References in periodicals archive ?
Newcastle Council says it has chosen long term gains over short term glory.
Small business owners can often face a dilemma in deciding whether to expand, however long term gains make expansion a real positive for viable businesses and allows them to no longer be at a cost disadvantage in comparison to their larger rivals enjoying economies of scale."
Long term gains in educational access depend on anticipating future financial and non-financial constraints on growth and on successful implementation of plans which support growth that can be sustained.
Even so, nearly all 65 adults believe the long term gains outweighed the costs and would choose a similar program for their own children--though not without conditions and apprehensions.
However, in 1986 Congress reversed the incentives to accelerate recognition of losses and delay the recognition of long term gains. Investors selling before the end of 1986 would be taxed on only 40 percent of their long term gains.
``Of particular significance was the return of some familiar faces in the form of the professional investor``Certainly, the early part of 2004 was dominated by amateur developers looking to make quick gains but with a more stabilised market in 2005, long term gains - the pursuit of the professional investor - is now the catchphrasetonymcdonough@dailypost.co.uk

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