Long-term capital gain

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 ?
stock fund, which they had bought several years ago for $35,000, generating a $15,000 long-term capital gain in a taxable account.
The dividend will be paid on March 29, 2018 on the shares of the Company's common stock outstanding as of the record date of March 22, 2018 and will be reported as a long-term capital gain for 2018.
Capital gain rate differential adjustment of long-term capital gain
All or part of the distribution may be treated as long-term capital gain or qualified dividend income (or a combination of both).
The excess of net long-term capital gain over net short-term capital loss (if any) is net capital gain.
(3) In general, IRC Section 1260 targets the use of certain derivative contracts by taxpayers in arrangements that are primarily designed to convert what otherwise would be ordinary income and short-term capital gain into long-term capital gain. Congress was particularly concerned about derivative contracts with respect to partnerships and other pass-through entities.
If, in a single tax year, the gains from Section 1231 assets exceed the losses from Section 1231 assets, each Section 1231 asset sale is treated as either a long-term capital gain or loss.
whether the donor makes a specific election with respect to long-term capital gain property donated to public charities;
If you sold that stock, you'd have an $800 long-term capital gain and owe $120 to the Ins, at a 15% tax rate.
A new trend has been identified in the buy-to-let market whereby investors put down a high deposit hoping for a long-term capital gain.
Instead of receiving the $60,000 profits as a cash dividend, H sells all the stock for $160,000, realizing a long-term capital gain of $60,000 ($160,000 price--$100,000 adjusted basis).

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