capital gains tax


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Capital gains tax

The tax levied on profits from the sale of capital assets. A long-term capital gain, which is achieved once an asset is held for at least 12 months, is taxed at a maximum rate of 20% (taxpayers in 28% tax bracket) and 10% (taxpayers in 15% tax bracket). Assets held for less than 12 months are taxed at regular income tax levels, and, since January 1, 2000, assets held for at least five years are taxed at 18% and 8%.

Capital Gains Tax

The tax paid on profits realized by selling a position held for longer than one year. For example, if someone buys a stock or bond and sells it five years later for more than what he/she paid, that person is assessed the capital gains tax. In the United States, capital gains taxes are lower than regular income taxes. This is because the government wishes to encourage long-term investment. It is important to note that the capital gains tax is only assessed on long-term capital gains, not on short-term capital gains. See also: Long-term capital loss.

capital gains tax

The tax applicable to gains realized from the sale of capital assets, including stocks and bonds. The capital gains tax rate and holding period requirements are periodically changed by Congress. A favorable tax rate is generally applied to realized gains on assets that are sold following a holding period of over one year. Realized capital gains on assets held a year or less do not generally receive favorable tax treatment.

Capital gains tax (CGT).

A capital gains tax is due on profits you realize on the sale of a capital asset, such as stock, bonds, or real estate.

Long-term gains, on assets you own more than a year, are taxed at a lower rate than ordinary income while short-term gains are taxed at your regular rate.

The long-term capital gains tax rates on most investments is 15% for anyone whose marginal federal tax rate is 25% or higher, and 5% for anyone whose marginal rate is 10% or 15%. There are some exceptions. For example, long-term gains on collectibles are taxed at 28%.

You are exempt from capital gains tax on profits of up to $250,000 on the sale of your primary home if you're single and up to $500,000 if you're married and file a joint return, provided you meet the requirements for this exemption.

capital gains tax

a TAX on the surplus obtained from the sale of an ASSET for more than was originally paid for it.

In the UK, CAPITAL GAINS tax for business assets is based (as at 2005/06) on a sliding scale, from 40% on gains from assets held for under one year to 10% on gains realised after 4 years. For persons, capital gains on ‘chargeable'assets (e.g. shares) up to £8,500 per year are exempt from tax; above this they are taxed at 40%.

capital gains tax

a TAX on the surplus obtained from the sale of an ASSET for more than was originally paid for it. In the UK, CAPITAL GAINS tax for business assets is based (as at 2005/06) on a sliding scale, falling from 40% on gains from assets held for under one year to 10% on gains realised after four years. For persons, capital gains on chargeable’ assets (e.g. shares) up to £8,500 per year are exempt from tax; above this they are taxed at 40%.
References in periodicals archive ?
And the lower long-term capital gains tax rates make buy-and-hold investing even more attractive.
THINK BEFORE YOU SELL Can gifting a home to a family member before selling it save you capital gains tax?
Whereas the expensive property is much more determined by overseas demand, so that would be a tip if you want to try and mitigate the occasions of this Capital Gains Tax and of course in the short term, it pushes prices down, which means there won't be any capital gains so you won't have to worry about the tax."
The current top capital gains tax rate will increase by a third on the first of the year, from 15 percent to 20 percent.
I believe that the supply of properties for sale is going to pick up very dramatically over the next few months as potential sellers become more aware of the looming increases in capital gains taxes in 2013.
During the meeting, the MOF will put forth international comparison data on capital gains tax for securities, including the practices of Japan, South Korea, Hong Kong, and Singapore.
While business interests argue that lower taxes on capital gains leads to more private-sector investment, opponents have consistently argued that because Oregon relies so heavily on income taxes for its budget, it can't afford to give any breaks on capital gains taxes, which are expected to generate around $800 million in the coming biennium.
Commercial brokers and experts in the investment sales market say that fear surrounding a capital gains tax increase is spurring discretionary sellers in New York to list their properties.
Section 3 discusses the results of the simulations, beginning with an exploration of the welfare consequences of the effects of inflation on the housing market, and concluding with a discussion of the welfare consequences of different capital gains tax systems.
For many investors, capital gains tax was the main concern prior to the announcement.
ISLAMABAD, June 15, 2010 (Frontier Star): Finance Minister Dr Hafiz Sheikh will give detailed briefing to the president Asif Ali Zardari with regard to market reservations on imposition of capital gains tax on the sale of shares and ongoing crisis in stock exchange.
LANDLORD A s s i s t , t h e nationwide tenant eviction and rent recovery firm, is concerned that expected increases in Capital Gains Tax could have a damaging e f fe c t on the buy-to-let sector.