Long-term capital gain

(redirected from Long-term capital loss)

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 ?
* Do the taxpayers have a short-term and/or long-term capital loss carryover to next year?
So, you cannot claim relief for any long-term capital loss.
Any loss on closing the securities futures contract will be a long-term capital loss.
* $6,000 long-term capital loss from the sale of stock
If it results in a net long-term capital loss, it is deductible up to $3,000 per year until it is exhausted.
If this is then offset by a $6,000 of long-term capital loss from other transactions, H will pay no income tax.
If Tim sells the stock at $2 per share after the restrictions lapse, he will realize a $2 per share long-term capital loss. Such losses can be offset against capital gains, but only $3,000 can be deducted against ordinary income.
Brunswick sold the fourth note in 1991 and reported a $32.6 million long-term capital loss.
If she waited more than 30 calendar days between the, sale and the repurchase, the $11,000 long-term capital loss is recognized and the holding period starts anew for the "new" stock with a $23,000 cost basis.
You must adjust the entire amount of that remaining net capital gain if you do not have a net long-term capital loss from U.S.
For example, due to the long-term capital loss limitations discussed in Chapter 21, Capital Gains and Losses, there is an incentive for taxpayers to report losses, not as capital losses but, as a direct reduction to their ordinary income.
Therefore, the bondholder's adjusted basis in the bond on September 30, 2006 is $9,565.86 and the bondholder realizes a $465.86 long-term capital loss on the sale ($9,565.86 - $9,100).

Full browser ?