The determination of what constitutes a capital asset is essential to the tax treatment of the profits from the sale of property as capital gains, which are taxed at a lower rate than ordinary income. West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All ...
Define capital asset. capital asset synonyms, capital asset pronunciation, capital asset translation, English dictionary definition of capital asset. n. A long-term asset, such as land or a building. American Heritage® Dictionary of the English Langua
Define Capital Tax. Capital Tax synonyms, Capital Tax pronunciation, Capital Tax translation, English dictionary definition of Capital Tax. n a tax on the profit made from the sale of an asset. Abbreviation: CGT Collins English Dictionary – Complete and
Capital assets – definition and meaning Capital assetsinclude land, buildings, machinery, computer equipment and vehicles. In other words, they are things a business needs to produce goods and services. The term also refers to an asset on which we must pay capital gains tax if we sell it. ...
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 ...
CGT - Capital Gain Tax(Definition) CGT is the abbreviation for capital gains tax. This is a tax that you will pay only on profits you make once you have sold an asset or investment. Once a share or investment asset is sold, it is referred to as being “realized”. Stock shares do ...
You may owe capital gains taxes when you realize capital gains by selling an asset. Taxes are determined by your income level and how long you held the investment before selling. Generally, the capital gains tax rate is higher for short-term gains (investments held for 1 year or less) than...
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A capital gain refers to the increase in the value of acapital assetwhen it is sold. It occurs when you sell an asset for more than what you originally paid for it. Almost any type of asset you own is a capital asset. This can include a type of investment (like a stock, bond, or...
Thetax attributeof capital loss is essentially the difference between thepurchase priceand the price at which the asset is sold, where the sale price is lower than the purchase price. For example, if an investor bought a house for $250,000 and sold the house five years later for $200,000...