Legal Definition and Related Resources of Capital Gain

A term of art within the internal revenue code. As opposed to ordinary income , capital gain receives more favorable tax treatment . Only items representing capital interest may be treated as capital gain. Miller v C.I.R. (C.A.5)37I F.2d255.

When a stock is sold for a profit, it’s the difference between the net sales price of securities and their net cost, or original basis. If a stock is sold below cost, the difference is a capital loss.

The positive change in the value of an asset, a negative capital gain is a capital loss.

Browse or run a search for Capital Gain in the American Encyclopedia of Law, the Asian Encyclopedia of Law, the European Encyclopedia of Law, the UK Encyclopedia of Law or the Latin American and Spanish Encyclopedia of Law.

Capital Gain in Historical Law

You might be interested in the historical meaning of this term. Browse or search for Capital Gain in Historical Law in the Encyclopedia of Law.

Search for legal acronyms and/or abbreviations containing Capital Gain in the Legal Abbreviations and Acronyms Dictionary.

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Mentioned in these terms

Adjusted Taxable Income.

Capital Gain in the Economic Activity

An introductory concept of Capital Gain may be: the increase in the value of an asset between the time it is purchased and the time it is sold

Capital Gain Definition (in the Accounting Vocabulary)

The New York State Society of Certified Public Accountants offers the following definition of Capital Gain in a way that is easy for anybody to understand: Portion of the total GAIN recognized on the sale or exchange of a noninventory asset which is not taxed as ORDINARY INCOME. Capital gains have historically been taxed at a lower rate than ordinary income.

United States Tax Concept of Capital Gain

The difference between the amount realized and adjusted basis on the sale or exchange of capital assets. Profit on the sale of capital assets such as stocks, mutual fund shares and real estate. Depending on your tax bracket and on how long you held a capital asset you may pay about one-third to one-half less tax on a capital gain than you would have paid on the same amount of ordinary income.

Concept of Capital Gain in the context of Real Property

A short definition of Capital Gain: Gain realized from the sale of a capital asset. The difference between the purchase and sale price less allowable deductions, plus depreciation.

Concept of Capital Gain in the context of Real Property

A short definition of Capital Gain: Gain realized from the sale of a capital asset. The difference between the purchase and sale price less allowable deductions, plus depreciation.

Capital Gain