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| Seller: Capital Gains |
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1. The amount by which proceeds from the sale of a capital asset exceed the original cost.
2. Capital Gain
An increase in the value of a capital asset (investment or real estate) that gives it a higher worth than the purchase price. The gain is not realized until the asset is sold. A capital gain may be short-term (one year or less) or long-term (more than one year), and must be claimed on income taxes.
Investopedia Says: Long-term capital gains are usually taxed at a lower rate than regular income. This is done to encourage entrepreneurship and investment in the economy.
3. Economics: Capital Gain
Personal income earned by the sale of assets, such as stocks or real property. The gain is the difference between the price paid for the asset and the selling price. Most conservatives want capital gains taxed at a lower rate than ordinary income in order to stimulate investment, whereas most liberals oppose a lower rate for capital gains as a subsidy for the wealthy.
4. Finance
In finance, a capital gain is a profit that is realized from the sale of an asset that was previously purchased at a lower price. The most common capital gains are realized from the sale of stocks, bonds, and property. (If the sale of the asset had yielded a loss rather than a profit, this loss would be called a capital loss.)
Capital gains are often exempt from income tax, in which case it may be important to distinguish capital gains (or losses) realised on the sale of fixed assets (long-life assets that form part of the structure of a business, such as real property) from trading profits or losses realised on the sale of trading stock (short-life assets that are quickly sold on).
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