capital gains tax

Profit from sales

Capital gains tax is a tax on profit from selling an asset—stocks, real estate, or other investments—for more than its purchase price.

Most tax systems distinguish between short-term gains (assets held briefly, taxed at higher rates) and long-term gains (assets held longer, often taxed favorably): We held the stock for a year to qualify for the lower capital gains tax rate.

investment

stocks

Ownership stakes or inventory

portfolio · funds · mutual funds · index funds · ETFs · IRA · 401k · brokerage · trading · shareholder

taxation

IRS

Federal tax collector

rate · long-term · short-term · exemptions · thresholds · deductions · liabilities · withholding · assessment · collection

profit

earnings

Money gained from work

surplus · windfall · appreciation · growth · accumulation · carryover

realty

property

Something owned or inherent

homeownership · estate · appreciation · depreciation · ownership · deed · title · mortgage · equity · valuation

Categories
Opposites
type of taxable income

capital gains taxincome tax

Government charge on earnings

wage tax · payroll tax · employment tax · wealth tax · inheritance tax

tax vs. tax benefit

capital gains taxtax deferral

Delayed payment to government

tax shelter · tax haven · tax credit · tax break

investment gain vs. loss treatment

capital gains taxcapital losses

Decreases in asset value

investment losses · tax loss

Family

gain, capital, gains, gaining, capitalism, capitalist, capitalize, capitalization, capitalists

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