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 ?
(15) Nahid Aslanbeigui and Guy Oakes (2012, 139-142; 2015, 108-110) have presented the case for the view that Pigou's change of mind on the capital levy is an illustration of the 'historicity' of his approach to policy analysis.
For example, the discussion of the capital levy to reduce the burden of public debt is couched in terms of the impact that it will have on revenue.
The Committee's final report, released in 1927, followed Pigou's line of reasoning by concluding that there was no clear evidence supporting the alleged benefits of a capital levy: 'Certainly, whether regarded as a means of lightening the annual burden of industry, or as a means of reducing indirect taxes and increasing expenditure on social objects, it [the levy] would, in our opinion, yield physical results quite disproportionate to the magnitude of the operation' (Committee on National Debt and Taxation 1927, 293).
"A Capital Levy: The Problems of Realisation and Valuation." The Economic Journal 28 (110): 157-166.
Absent an instrument that allows households to borrow from the government, the government cannot carry the proceeds from a large initial tax to future periods, and the single capital levy prescribed in Chamley (1986) cannot be implemented.
The decision to form an independent monetary authority is most likely to be made when rival political parties have little to lose by cooperating to restore a depressed inflation-tax base, such as immediately following an inflation-based capital levy that has greatly increased the public's estimate of the likelihood of future high inflation.
We hypothesize that the seigniorage motive did not produce fiat money before the 20th century(17) because (redeemable) banknotes had not yet become commonly accepted in areas of lesser financial sophistication, so those areas could not be subjected to a capital levy by the government's monopolizing the issue of banknotes and permanently suspending redemption of government notes.
That being the case, his section on the capital levy was essentially a blocking technique.
And it represents a dangerous new phase in the politico-economic development of the "new world order." It is not mere chance that the "capital levy" for common depositors was first tried on tiny Cyprus.
In addition to a globally coordinated wave of "capital levy" taxation, the IMF/central banks axis of evil is also pushing an agenda of global inflation (under the labels of "stimulus" and "quantitative easing") and global regulation (under the label of "macropru-dential policy").
Among the most jarring proposals in the 107-page report is the suggestion of a "one-off capital levy." Following so closely on the heels of the IMF's Cyprus levy, the implications are ominous, to say the least.
Another option floated by the city is asking voters to approve a capital levy of up to 10 years to cover public improvements related to a hospital development.