Capital gains tax

For all other forms of taxation, see tax A capital gains tax (abbreviated: CGT) is a tax charged on capital gains, the profit realized on the sale of an asset that was purchased at a lower price. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property. Not all countries implement a capital gains tax and most have different rates of taxation for individuals and corporations.
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Noun
1. a tax on capital gains; "he avoided the capital gains tax by short selling"
(hypernym) tax, taxation, revenue enhancement

The tax levied on profits from the sale of capital assets. A long-term capital gain, which is achieved once an asset is held for at least 12 months, is taxed at a maximum rate of 20% (taxpayers in 28% tax bracket) and 10 % (taxpayers in 15 % tax bracket). Assets held for less than 12 months are taxed at regular income tax levels, and, starting January 1, 2000, assets held for at least five years are taxed at 18% and 8%.

Capital gains tax
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