Capital Gains Treatment

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Dictionary Says

Definition of 'Capital Gains Treatment'

The specific taxes assessed on investment capital gains as determined by the U.S. Tax Code. When a stock is sold for a profit, the portion of the proceeds over and above the purchase value (or cost basis) is known as capital gains. Capital gains tax is broken down into two categories: short-term capital gains and long-term capital gains. Stocks held longer than one year are considered long term for the treatment of any capital gains, and are taxed a maximum of 15% depending on the investor's tax bracket. Stocks held less than one year are subject to short-term capital gains at a maximum rate of 35% depending again on the investor's tax bracket.  
Investopedia Says

Investopedia explains 'Capital Gains Treatment'

The huge difference between the short-term and long-term rates makes it clear that paying close attention to the tax consequences of investing in stocks is a critical skill to develop. As an investor's portfolio grows, he or she should increasingly keep track of capital gains, including making adjustments near the end of the calendar year to reduce capital gains taxes as much as possible. An accountant or investment professional can assist in these efforts.
Search results for

'Capital Gains Treatment'

  • How To Reduce Taxes On ETF Gains

    http://www.investopedia.com/articles/exchangetradedfunds/08/etf-taxes-introduction.asp
    ... If you hold the security for one year or less, then it will receive short-term capital
    gains treatment. Advertisement - Article continues below. ...

  • Avoid Capital Gains Tax On Your Home Sale

    http://www.investopedia.com/articles/06/section1031exchange.asp
    ... Regulations The 1031 exchange will not allow you to avoid capital gains taxes in ...
    for a rental property - will not receive the tax-free treatment afforded under ...

  • Series 7 Study Guide - Equities - Determining Gains and Losses ...

    http://www.investopedia.com/exam-guide/series-7/equities/calculating-capital-gains-losses.asp
    ... The first scenario would be an example of the treatment called First In ... make a
    significant difference in how much taxable revenue from capital gains your client ...

  • Series 6 Study Guide - Taxation Issues - Calculating Gains and ...

    http://www.investopedia.com/exam-guide/finra-series-6/taxation-issues/calculating-gains-losses.asp
    ... Therefore, capital gains must be calculated and taxes paid ... buy it back so you can
    enjoy the future capital gain ... Next: Tax Treatment of Variable Annuity Contracts ...

  • Exchange Traded Notes - An Alternative To ETFs

    http://www.investopedia.com/articles/06/ETNvsETF.asp
    ... Since long-term capital gains are treated more favorably than short-term capital
    gains and interest, the tax treatment of ETNs should be more favorable than ...

  • Top Homeowner Tax Write-Offs For 2010 - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1210/Top-Homeowner-Tax-Write-Offs-For-2010.aspx
    ... Tax-Free Capital Gains Treatment This is far and away the largest capital gains
    tax break afforded to individual investors in the tax code. ...

  • Exchange Traded Notes - An Alternative To ETFs

    http://www.investopedia.com/articles/06/etnvsetf.asp
    ... Since long-term capital gains are treated more favorably than short-term capital
    gains and interest, the tax treatment of ETNs should be more favorable than ...

  • Not All Retirement Accounts Should Be Tax-Deferred

    http://www.investopedia.com/articles/retirement/08/annuities-tax-free.asp
    ... In general, any investment or security that qualifies for capital gains
    treatment is a good candidate for a taxable savings account. ...

  • How Restricted Stock And RSUs Are Taxed

    http://www.investopedia.com/articles/tax/09/restricted-stock-tax.asp
    ... the time of vesting. Therefore, capital gains treatment begins at the time
    of grant and not at vesting. This type of election can ...

  • Minimize Taxes With Asset Location

    http://www.investopedia.com/articles/tax/08/asset-location.asp
    ... How a security is taxed will determine where it should be located. Under the 2010
    tax code, dividends and capital gains get favorable treatment. ...

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