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 ?
Summary: New Delhi, Aug 23 (ANI): The surcharge levied in the union budget on short-term and long-term capital gains of foreign portfolio investors (FPI) and the one on equity in the case of domestic investors have been abolished, Finance Minister Nirmala Sitharaman announced on Friday restoring the pre-budget position.
Tax rates on long-term capital gains are 0%, 15%, or 20%, depending on the seller's income.
As a result, there is a lower tax rate for long-term capital gains as opposed to short-term capital gains.
The IRS recently announced its inflation-related adjustments to the tax code for 2019, and one of those changes was the revised long-term capital gains tax brackets.
The Fund's Board of Trustees has approved a managed distribution policy for the Fund (the "Plan") in reliance on exemptive relief received from the Securities and Exchange Commission which permits the Fund to make periodic distributions of long-term capital gains more frequently than otherwise permitted with respect to its common shares subject to certain conditions.
Morgan Stanley closed-end funds, Morgan Stanley Asia-Pacific Fund Inc (NYSE:APF); Morgan Stanley Emerging Markets Debt Fund Inc (NYSE:MSD); Morgan Stanley Emerging Markets Domestic Debt Fund Inc (NYSE:EDD); Morgan Stanley Emerging Markets Fund Inc (NYSE:MSF); Morgan Stanley India Investment Fund Inc (NYSE:IIF); The Latin American Discovery Fund Inc (NYSE:LDF); and The Thai Fund Inc (NYSE:TTF) reported on Wednesday monthly and quarterly dividends on their net investment income, short-term and long-term capital gains.
net long-term capital loss (defined above) minus the amount by which by the taxpayer earlier reduced foreign long-term capital gains via the U.S.
The capital gain portion of the distributions is comprised of long-term capital gains estimated at USD0.8462 per share and short-term capital gains estimated at USD0.4363 per share.
According to Suresh Sadagopan, Founder, Ladder7 Financial Advisories , while there is no long-term capital gains tax in equity investment, such a tax liability may arise in case you had invested in a real estate property and want to sell it now.
This brings the total year-end distribution to $0.61 per share, which consists of the previously declared $0.10 per share fourth quarter distribution plus the $0.51 per share additional distribution, sourced primarily from long-term capital gains. The distribution will be included in 2013 income for shareholders subject to income tax.
112-240, taxpayers can continue to save significant taxes on qualified dividends and long-term capital gains.

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