Capital gains are the profits that you make when you buy something and then sell it again at a higher price. He called for the reform of capital gains tax. profits you make by selling your possessions
a tax that you pay on profits that you make when you sell your possessions. Tax levied on gains realized from the sale or exchange of capital assets. Though capital gains have been taxed in the U.S. since the advent of the federal income tax, certain capital gains are taxed less heavily than regular income, while others are exempted from taxation. This preferential treatment is intended to encourage investment and thereby stimulate economic growth. In theory the tax break encourages investors to risk their capital in new ventures. Critics argue that preferential treatment results in distorted patterns of investment because regular income is converted into capital gains in order to avoid paying income tax. See also corporate income tax
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
Profit from a sale of an investment constitutes a capital gain For example, if you bought a share of stock for $5 and later sold it for $7 50, you would have a capital gain of $2 50
Profit earned from the sale of an asset, where the sales price was greater than the adjusted basis (See adjusted basis, deferred capital gain, excluded capital gain, realized capital gain (loss), recognized capital gain)
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
Profit realized when a capital asset is sold for a higher price than the purchase price Commercial paper - unsecured obligation issued by a corporation or special purpose entity to finance its short-term credit needs Maturities generally range from 1 to 270 days Coupon - periodic interest payment made to a bondholder during the life of a bond Credit rating - evaluation of a corporate or municipal bond's relative credit-worthiness according to the issuer's ability to repay principal and make interest payments Bonds are rated by various organizations such as Standard & Poor's and Moody's Ratings range from AAA or Aaa (the highest) to D, which represents a company in default Current yield - annual rate of return on a security, calculated by dividing the interest or dividends paid by the security's current market price back to top
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
An increase (decrease) in the value of your investment or an amount received (lost) by a mutual fund for selling securities above (below) their cost 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
Gain on the sale of a capital asset If long-term (generally over six months), capital gains are sometimes favorably taxed A personal residence is a capital asset
The gain from selling a capital asset that is held for more than a specified time The gain is usually the amount realized (net sales price) less your investment (adjusted tax basis) in the property Capital gains receive favorable tax treatment in that the maximum rate is set at 10 to 28 percent when the maximum tax rate on ordinary income is 39 6 percent Capital losses can only be deducted in any year up to the amount of capital gains plus $3,000 Special rules apply for capital gains realized on investments in qualified Small Business Stock that permit 50 percent of the capital gain to be excluded
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
The difference between the selling price of an asset that has appreciated in value and its original purchase price A "capital loss" occurs when the selling price of an asset is below the original purchase price Long-term capital gains (on assets held for a year or longer) are taxed at a lower rate than ordinary income
If you sell an asset for more than you paid for it originally, you will have a gain Examples of assets that could produce a capital gain are: a piece of land, a government bond, or stock in a corporation
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
When a stock is sold for a profit, the capital gain is the difference between the net sales price of the securities and their net cost, or original basis If a stock is sold below cost, the difference is a capital loss