CAPITAL GAIN Meaning and
Definition
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A capital gain refers to the profit realized from the sale or disposal of a capital asset, such as stocks, bonds, real estate, or other investments. It is the positive difference between the selling price of the asset and its original purchase price or cost basis.
When an individual or entity sells a capital asset for more than its cost basis, the resulting profit is subject to taxation in many countries. This taxation is typically referred to as capital gains tax. The rate at which these gains are taxed can vary depending on factors such as the type of asset, the holding period, and the individual's tax bracket.
Capital gains can be long-term or short-term, depending on the duration the asset was held. In most cases, if the asset was held for a year or less before being sold, the resulting gain would be classified as a short-term capital gain. If the asset was held for more than a year, it would be classified as a long-term capital gain.
Capital gains can significantly impact an individual's overall tax liability, as they are generally taxed at a lower rate than ordinary income. For this reason, capital gains can present attractive investment opportunities for individuals seeking to build wealth over the long term. However, specific tax laws and regulations concerning capital gains may vary from one jurisdiction to another.
Common Misspellings for CAPITAL GAIN
- xapital gain
- vapital gain
- fapital gain
- dapital gain
- czpital gain
- cspital gain
- cwpital gain
- cqpital gain
- caoital gain
- calital gain
- ca-ital gain
- ca0ital gain
- caputal gain
- capjtal gain
- capktal gain
- capotal gain
- cap9tal gain
- cap8tal gain
- capiral gain
Etymology of CAPITAL GAIN
The word "capital" in "capital gain" is derived from the Latin word "caput", meaning "head" or "main". In this context, it refers to the head or source of wealth or money. The word "gain" comes from the Old French word "gaigner", meaning "to earn" or "acquire". Therefore, "capital gain" signifies the increase in value or profit earned from the sale or exchange of a capital asset.
Similar spelling words for CAPITAL GAIN
- capital loss,
- capitalization,
- capital letter,
- Capital Of Iraq,
- Capital Of Iran,
- capitalize,
- Capital Of Ohio,
- Capital Of Cuba,
- Capital Of Oman,
- Capital Of Utah,
- capitalisation,
- capital stock,
- Capital Of Iowa,
- capitalist,
- capitalism,
- capital cost,
- Capital Of Togo,
- Capital Of Laos,
- capital ship,
- capital account,
- capitalistic,
- capital offense,
- Capital Of Peru,
- capital of chad,
- capitalise,
- capital levy.
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