Long-term capital gain

(redirected from Long-Term Capital Gains)

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 ?
For them, the sale of appreciated capital assets should be structured to occur from 2008-2010, when most long-term capital gains are tax free for income normally taxed in the 15% tax bracket or lower and below the kiddie tax unearned income threshold; see Sec.
Lower Tax Rates on Long-Term Capital Gains and Qualified Dividends
The Jobs and Growth Tax Relief Reconciliation Act of 2003 reduces the federal tax rates for dividends and long-term capital gains The changes brought about by the act will significantly affect investment and related tax strategies.
The Fund expects to report a portion of the distribution as long-term capital gains for tax purposes.
Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains, for regulated investment companies (RICs) and real estate investment trusts (REITs); and
Under the Jobs and Growth Tax Relief Reconciliation Act of 2003, long-term capital gains (i.
For example, if an individual taxpayer has a net capital gain, the long-term capital gains and losses would be separated into three tax rate groups: 28%, 25% and 20% (10% for gains that otherwise would be taxed at 15%).
The Taxpayer Relief Act of 1997 (TRA '97) created a new category of five-year long-term capital gains, effective Jan.
On liquidation, the distribution of the after-tax net proceeds to the shareholders will trigger a gain, resulting in a shareholder-level tax at a Federal long-term capital gains rate.
83-7(b)(2), but chose to ignore the regulation based on their mistaken belief that that the regulation was invalid--Henry asserted that he (1) acted in good faith and reasonably relied on the advice of his accountant in reporting the option proceeds as long-term capital gains and (2) did not know nor should have known of Regs.
Previously, long-term capital gains were taxed at a maximum rate of 28%; under the new law, the rate is reduced to 20% (10% if the taxpayer s marginal tax rate is 15%).
Thus, the RUPIA does not distinguish between long-term capital gains and short-term capital gains.

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