The result of selling a capital asset at a higher price than it cost. Whether an investor makes a capital gain or not depends on the purchase price of an asset compared to its selling price, the effect of depreciation on its value and whether inflation has bitten into the investor's profit margin. Capital gain has different meanings for the tax department, the economist and the accountant. See capital gains tax. Capital gains tax a tax on income (gain) arising from changes in the market value of assets.
The profit or loss made when selling a noninventory asset. In tax law you can have either a long-term capital gain (loss) or a short-term capital gain (loss) depending on how long you have owned the asset. Some taxpayers think that capital gains taxes are harsher than regular taxes. In fact, it is the preferred rate, if one must be taxed on a transaction, since it is lower than your normal tax bracket.
When you sell an asset at a higher price than you paid for it, the difference is your capital gain. If you own the share for more than a year before selling it, you have a long-term capital gain. If you hold the share for less than a year, you have a short-term capital gain.
Increased capital in business or investment property through appreciation. The difference between the selling price and the adjusted basis of a property. This gain is taxed at 15% by the Federal government.
If you sell an Investment for more than you have paid for it, the profit you make is called a capital gain. Collective Investment - These are Investments such as unit trusts and investment trust schemes where money is pooled from lots of people investing their contributions. back
The amount by which an asset's selling price exceeds its initial purchase price. A realized capital gain is an investment that has been sold at a profit. An unrealized capital gain is an investment that hasn't been sold yet but would result in a profit if sold. Capital gain is often used to mean realized capital gain. opposite of capital loss. see also basis, cost basis, dividend, ordinary income.
A tax classification of investment earnings resulting from the purchase and sale of assets. Typically, an investor prefers that investment earnings be classified as long term capital gains (held for a year or longer), which are taxed at a lower rate than ordinary income.
A profit (selling price minus cost basis) or loss on the sale of a security or other asset. Short-term capital gain refers to a gain on assets owned for one year or less. Long-term capital gain refers to a gain on assets owned for more than one year. Capital gains generated by a fund from the sale of securities in its portfolio are distributed to its shareholders.
Profit that results when the price of a secuirty held by a mutual fund rises above its purchase price. If the security is sold, then the capital gain is realized; if the security is still being held, the gain is unrealized. If the security has been held for more than a year, the gain is long-term; otherwise it is shorter-term. A capital loss occurs when the price of a security falls below its purchase price.
The profit received from the sale of an asset. It is calculated by subtracting the total amount paid (including costs incurred to purchase and sell the asset) from the higher price at which the asset is sold, less any sales commissions and costs.
A profit or loss on the sale of an investment, property or other investment. Short-term capital gain (loss) refers to a gain (loss) on assets owned for one year or less. Long-term capital gain (loss) refers to a gain (loss) on assets owned for more than one year.
The profit you make when you sell an investment for more than you paid for it. If you buy a house for $100,000 and sell it for $120,000, your capital gain is $20,000. A capital loss is when you sell an investment for less than you paid for it.
When you are selling a stock hopefully it is for profit. The profit that you make is the net sales of the stock minus the net cost to buy the stock originally. This profit is known as capital gains. If you lose money when you sell your stock, meaning that the net cost was higher than the net sales, it is known as capital loss. In the Marketocracy competition you are not charged any taxes and thus will not have to worry about your capital gains being taxed.
The amount by which an asset's selling price exceeds its initial purchase price. A realized capital gain is the profit resulting from the sale of an investment. An unrealized capital gain is an investment that hasn't been sold yet but would result in a profit if sold. Capital gains generally receive more favorable tax treatment than ordinary gains. Depending on your tax bracket and on how long you held a capital asset, you may pay about one-third to one-half less tax on a capital gain than you would have paid on the same amount of ordinary income.
Profit from sale of a particular asset at a higher market price than it cost. Investors often buy for the sale of an expected increase in value of an asset rather than of the income it may generate during the time they own it.
Money earned by a mutual fund when it sells holdings in its portfolio at a price greater than the price it originally paid. An increase in the market value of a mutual fund's securities, as reflected in the net asset value (NAV) of the fund's shares.
At resale of a capital item, the amount by which the net sale proceeds exceed the adjusted cost basis (book value). Used for income tax computations. Gains are called short or long term based upon length of holding period after acquisition. Usually taxed at lower rates than ordinary income.
The difference between the increased price of a share compared to the purchase price, less brokerage. Capital Gains Tax was introduced in South Africa on 1 October 2001. Before the introduction of CGT, if you trade in and out of too many shares too frequently the SA Revenue Service could deem you a 'dealer' and impose income tax on your profits. Conversely, you can set off losses. Like property purchases and sales this was a very 'grey' area and no clear definition of what 'too frequently' means was available. Now all trades and purchases and sales of property must be delared and will be subjected to Capital Gains Tax.
Is a term that refers to the financial gain obtained when you sell something for more than you paid for it. Usually, the profit you receive from selling the asset incurs capital gains tax, except on the sale of a home that remains exempt from this tax.
When a stock, bond, or mutual fund is sold for a profit, the difference between the net sales price of the security and its net cost, or original basis. If a stock, bond, or mutual fund is sold below cost, the difference is a capital loss.
Arise when an investment is sold at a higher price than originally paid. In a mutual fund, capital gains are created when the fund buys and sells underlying securities at a premium over purchase price. These gains are then distributed to unitholders at least annually. Unitholders can also earn capital gains by redeeming their fund shares at higher prices than they originally paid.
A category of gain or loss under the tax law resulting from the sale or other disposition of specified property such as stock or bond investments, real estate, etc. It does not include property used in a trade or business. However, special rules apply in such situations that can result in similar treatment for business property.
Capital Gain refers to the amount of money made on Capital during a given tax period. For example if you own a house, and over the past year the value of your house increased by twenty thousand dollars, you would have to claim this twenty thousand dollars as a capital gain in your income taxes.
Profit or loss realized on the sale of securities or other assets in a fund's portfolio. Long term capital gains refer to a gain on assets owned in the portfolio for longer than one year. Short term capital gains refer to a gain on assets owned in the portfolio of one year or less. Profits are usually paid out to the mutual fund shareholders once a year.
You bought a share and later sold it. If you made a profit, that's your capital gain. If you lost money, it's a capital loss. If you make enough of a capital gain outside your tax-sheltered accounts (PEPs, ISAs), you'll be liable for capital gains tax (CGT). The amount of profit you can make without paying CGT is £7,100 for the 1999/2000 tax year.
The difference between the purchase price and selling price of an asset including any transaction costs. This can also be stated as the profit (or loss) resulting from the sale of a security adjusted for commissions.
arises when an investment is sold at a higher price than originally purchased. In a mutual fund, capital gains are created when the fund buys and sells securities. The net gains are then distributed to unitholders, at least annually. Unitholders can also realize a capital gain by redeeming units at a higher price than originally paid.
Capital gains tax (CGT) is the tax that you pay on any capital gain you make and include on your annual income tax return. It is not a separate tax, merely a component of your income tax. You are taxed on your net capital gain at your marginal tax rate. This would apply to the sale of an investment property.
An increase (decrease) in the value of your investment realized upon a sale or an amount received (lost) by a mutual fund for selling securities above (below) their cost. Any net captial gains earned by mutual funds are distributed to shareholders annually and reported on Form 1099-DIV. If you sell or exchange your fund shares for more or less than your cost basis, you will realize a capital gain or loss. All capital gains, whether earned by the fund or from the sale of fund shares, must be reported on your tax return. Different tax rates may apply depending on how long assets were held, when they were sold, and other factors. Any capital losses from the sale of fund shares must be reported on your tax return and may be used to offset capital gains.
An increase in the value of a capital asset such as common stock. If the asset is sold, the gain is a "realized" capital gain. A capital gain may be short-term (one year or less) or long-term (more than one year).
Generally, a sale or trade of a capital asset results in a capital gain or capital loss. If the sales price is greater than the basis, there is a gain. If you sell an item that you owned for personal use (such as a car, refrigerator, furniture, stereo, jewelry, or silverware), any gain is taxable as a capital gain. You cannot deduct a loss for personal-use property. However, if you sell an item that was held for investment (such as stocks, gold or silver bullion, coins, or gems), any gain is taxable as a capital gain and any loss is deductible as a capital loss.
Taxable income derived from the sale of a capital asset. It is equal to the sales price less the cost of sale, adjusted basis, suspended losses, excess cost recovery, and recapture of straight-line cost recovery.
Amount of money the fund has made selling stocks or other securities and has distributed to shareholders. The figure shown is the sterling amount distributed per share. Capital gains are paid to fund shareholders on a per share basis. When a capital gain distribution is made, the fund's net asset value drops by the amount of the distribution because the distribution is no longer considered part of the fund's assets.
Profit from the sale of a "capital" asset, such as real property. A long-term capital gain is a gain derived from property held more than 12 months. Long-term gains can be taxed at lower rates than short-term gains.
An increase from the purchase price to the selling price of common stock or any other capital asset; profit from the sale of investments or property (A capital gain that persists for one year or less is called a short-term capital gain. Likewise, one that persists for more than one year is called a long-term capital gain.)
The difference between the price at which you buy an investment and the price at which you sell it. Short-term capital gains are generated on property held 12 months or less. Long-term capital gains are generated on property held for more than 12 months.
Capital gain is calculated as follows: total selling price of the relinquished property, less exchange expenses, less the relinquished property's adjusted basis. The adjusted basis is the original cost, plus the cost of capital improvements, less depreciation or cost recovery deductions. Capital gains may be subject to depreciation recapture and other rules of the internal revenue service.
gain on the sale of a capital asset. Since May 6, 1997, the maximum individual tax rate on capital gains is 20%. There are limits on the deduction of capital losses against ordinary income. Example: Collins purchases land, for investment purposes, for $10,000. Thirteen months later she sells it for $14,000. She reports the $4,000 profit as a long-term capital gain on her income tax return.
An increase (decrease) in the market or principal value of a fund's securities. Among mutual funds this is reflected in the net asset value of its shares. Among individual stocks, such as IBM, this is reflected in the value of its stock.
Net income realized on the sale or exchange of a capital asset. A capital gain (or loss) is treated differently for tax purposes from ordinary income or the profit realized from the operation of a business. Also see “Business,” “Capital asset,” “Income,” “Ordinary income,” “Profit,” and “Taxable gain.
It arises when an investment is sold at a higher price than what was originally paid while buying it. Tax is applied on these capital gains. When securities are sold at a price lower than their purchase price, it results in capital loss.
The profit reported to the IRS upon the sale of a capital asset. Capital gain is the difference between the basis cost of an asset and the net proceeds of the sale of the asset. If the asset is sold for a lower price than its acquisition cost, a capital loss may be reported.
Profit derived from the selling price exceeding its initial purchase price. A realized capital gain is an investment that has been sold at a profit. An unrealized capital gain is an investment that has not been sold yet but would result in a profit if sold. Capital gain is often used to mean realized capital gain.
A trading profit. Trading gains that occur in one year or less are short-term capital gains; those that occur in periods longer than one year are long-term capital gains. Short-term and long-term capital gains are treated differently for tax purposes.
The positive difference between an asset's purchase price and the selling price. Current tax regulations require any gains to be taxed at a rate up to 28%. See: Capital Gains Distribution; Capital Loss
Financial gain that results when an owner sells an asset for a higher price than he paid for it. Under current law, long-term capital gains are typically taxed at a lower rate than earned income or other investment income. Capital gains may also be passed through to shareholders by mutual funds. Using a tax-advantaged savings vehicle like a 529 Plan or Coverdell account can mean that capital gain taxes will not be owed at all on money invested for college.
Portion of the total GAIN recognized on the sale or exchange of a noninventory asset which is not taxed as ORDINARY INCOME. Capital gains have historically been taxed at a lower rate than ordinary income.
The profit you make when you sell your house. You can calculate your capital gain by subtracting the adjusted cost basis from your home's selling price. The adjusted cost basis is your home's purchase price plus any major renovations you have made on your property, minus any losses like the cost of repairing flood damage. Based on your capital gain, the federal government figures out how much tax you owe.
Profit (or loss) from the sale of a capital asset. Capital gains may be short-term or long-term more than 12 months. Capital losses are used to offset capital gains to establish a net position for tax purposes.
When you sell a capital asset such as a property or shares, the profit is treated as a capital gain rather than income and is subject to Capital Gains Tax. This is the difference between the base cost (ie. the acquisition cost) and the value realised on disposal. Capital Gains Tax is charged at 40 per cent of the amount of the gain. In the period to 4 April 1998 the amount of the gain was reduced by indexation allowances. For disposals after 5 April 1998 there is to be a taper which will reduce the gain according to the length of time the asset has been held after 5 April 1998. The taper relief is more generous for business assets. Capital losses may be offset against gains and individuals have an annual exemption (£7,200 for 2000/1).
The market value received on the sale of an asset, which is higher (lower) than its purchase price (also called cost). If an asset is bought for $50 and sold for $75, the realized capital gain or profit is $25.
Profit on the sale of a capital asset. Capital gains receive more favorable tax treatment than regular income. Depending on your tax bracket and on how long you held an asset before selling it, you may pay about one-third to one-half less tax than you would have paid on the same amount if you had earned it as salary.
The profit from the sale of such property as stocks, mutual-fund shares and real estate. Gains from the sale of assets owned for 12 months or less are "short-term gains" and are taxed in your top tax bracket, just like salary. For most assets owned more than 12 months, profits upon sale are considered "long-term gains" and are taxed at 15%. Taxpayers who otherwise fall in the 10% or 15% bracket get an even better deal on long-term gains. Their rate is just 5%. The special rates for long-term gains do not, however, apply to all gains from investment real estate. To the extent that gain results from depreciation (depreciation deductions reduce your basis in the property and therefore increase gain dollar for dollar upon sale), a 25% rate applies (unless you are in the 10% or 15% bracket, in which case that rate applies) to this "recaptured" depreciation. Also, long term-gains from the sale of collectibles are taxed at 28%.
Taxable profit derived from the sale of a capital asset. The capital gain is the difference between the sale price and the basis of the property, after making appropriate adjustments for closing costs, fixing up expenses, capital improvements, allowable depreciation, etc.
Gain earned on the sale of an asset or gain deemed to be realized on the death of an individual, as if the asset had been sold on the date of death, e.g., deemed disposition. The difference between a capital propertyâ€(tm)s fair market value and its adjusted cost base â€“ essentially what youâ€(tm)ve made on the investment.
When a stock is sold for a profit, the capital gain is the difference between the security's purchase price and its selling price. An investor's capital gains tax rate on this profit depends on the length of time the investor holds the security before selling it. See: Capital Loss
In finance, a capital gain is profit that results from the appreciation of a capital asset over its purchase price. If the price of the capital asset has declined instead of appreciated, this is called a capital loss. Capital gains occur in both real assets, such as property, as well as financial assets, such as stocks or bonds.
The increase in value of a capital property (a property other than a principal residence) upon which tax is payable, either upon disposition of the property or the deemed disposition of the property under tax rules.