Capital Gains and Capital Loses Rebecca Danehey What
Capital Gains and Capital Loses Rebecca Danehey
What is a Capital Gain? 1. A profit made on sales of shares, commeditites and/or propert or land. 2. or an increase in the value of a capital asset; An amount by which the value or the proceeds of the sale of a capital asset by its owner exceed its cost to the owner 1. so if you have a share of $50 and you sell that share for $75 dollars your capital gain would be $25. www. finance. alberta. ca/business/ahstf/glossary. html
Capital Assets to have Capital Gains on. . . 1. Bonds 2. Stocks 3. Real Estate 4. Cars 5. Gold 6. Diamond 7. Any Property 8. Jewlery 9. Music Records exc. . . 1. Anything that you can sell you can possibly make a capital gain off of it. (if you purchace something and sell it for more that you bought it for you have made a capital gain)
What is a Capital Gain tax? 1. A capital gain tax (CGT) is a tax charged on capital gains. 1. Not all countries implement a capital gains tax and most have different rates of taxation for individuals and corporations. 2. Taxes are charged by a state over the transactions, dividends and capital gains on the stock market. However, these fiscal obligations may vary because, it could be assumed that the tax is already incorporated into the stock price through the different taxes companies pay to the state, or that tax-free stock market operations are useful to boost economic growth.
Capital Gain Tax. . . . 1. in a capital gain tax it can vary depending on other forms of taxation. 2. a person will only pay a capital gains tax when they have an asset that they want to sell for a profit. 3. lock-in-effect is when a person doesnt make payments on thier asset that they are selling or by holding one of their assets. 4. lock-in-effect is legal
What is A Capital Loss? A capital loss is the loss of a sale on a capital assest. 1. stocks 2. bonds 3. real estate 4. exc. .
The Capital Gain Tax Rate? 1. Capital gains are taxed usually at a balanced rate to a persons anual income 2. The amount an investor is taxed depends on thier tax bracket, and the amount of time the investment was held before being sold helps determine tax rates.
Tax Rate 1. with the tax rate for a capital gain the tax usually doesnt exceed 15% under very few circumstances are the taxes higer tha 15%. . . 1. some small buissnesses have a maximum rate of 28 -30% 2. property tax has a maximum of 25% rate 3. and when a person has things such as jewlery coins and other collectibales it can be taxed up as high as 27%
What happens to capital Gain? 1. Somethimes the capital gain taxes can be taken out of your taxes that are being deducted if you have more of a capital loss than a gapital gain. 2. The taxes can be as much as $3000 that can be deducted.
Who collects the capital gains taxes? 1. The IRS capital gains tax is applied to any profit that someone makes on a capital asset. 2. This includes homes, cars, bikes, recreational vehicles, stocks, and bonds. 3. The IRS capital gains tax is a way for the government to profit from the wealth of Americans to increase their tax collections http: //ezinearticles. com/? IRS-Capital-Gains-Tax---The-IRSWay-of-Getting-a-Cut-of-Your-Profits&id=4151048
The Current Rate. . 1. in 2010 the people paid no taxes at all if they were below a 25% income. 2. people who made more money paid up to 15% 3. The more money you have the smaller percent of taxes you have to pay
Short and Long Term Gains In a Short Term Gain: people are taxed by the person who is investings income tax rate. In a Long Term Gain: People who have capital assest that they are holding for a long time are taxed at a lower rate. Previously the tax rate was dropped fom 15% to 5% for people with much lower incomes.
Who is Effected? Most people debate over who gets the better benefits of paying capital gain taxes. 1. But higher income people get the better tax advantage and they also have better capital gains.
Quiz 1. What is a capital Gain? 2. What are capital assets? 3. Who collects capital gains taxes? 4. What is a capital loss? 5. What is lock-in effect?
Answers 1. A capital Gain is a profit made on sales of shares, commeditites and/or propert or land. 2. Capital gain assects are on bonds, stocks, real esate, coins, gold exc. . . 3. The IRS 4. A capital loss is the loss of a sale on a capital assest 5. Lock-in-effect is when a person doesnt make payments on thier asset that they are selling or by holding one of their assets.
Biblyography http: //www. irs. gov/newsroom/article/0, , id=106799, 00. html http: //ezinearticles. com/? IRS-Capital-Gains-Tax---The-IRSWay-of-Getting-a-Cut-of-Your-Profits&id=4151048 www. finance. alberta. ca/business/ahstf/glossary. html
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