Capital gains tax,
Definition of Capital gains tax:
Capital gains can be reduced by deducting the capital losses that occur when a taxable asset is sold for less than the original purchase price. The total of capital gains minus any capital losses is known as the "net capital gains.".
Capital gains tax is a levy assessed on the positive difference between the sale price of the asset and its original purchase price. Long-term capital gains tax is a levy on the profits from the sale of assets held for more than a year. The rates are 0%, 15%, or 20%, depending on your tax bracket. Short-term capital gains tax applies to assets held for a year or less, and is taxed as ordinary income.
A tax levied on profit from the sale of property or an investment.
Tax payable on profit made on the sale (disposal) of a capital asset, assessed and levied differently from tax on profit (income tax) realized from sale of goods or services in the normal course of a business. Often, profits on capital assets held for 12 months or longer are taxed at a favorable (lower) rate.
How to use Capital gains tax in a sentence?
- The ISA wrapper protects your investment from income tax and capital gains tax, which is a good thing for most investors.
Meaning of Capital gains tax & Capital gains tax Definition