Taxable Gain

AAA

DEFINITION of 'Taxable Gain'

A profit on the sale of an asset that is subject to taxation. Such gains are subject to capital gains tax, under which rate and application differ from country to country and from asset to asset. Taxable gains are generally realized from the sale of financial assets such as stocks and bonds, as well as other assets including real estate and personal property.

INVESTOPEDIA EXPLAINS 'Taxable Gain'

A taxable gain can generally be offset against a tax loss, so as to reduce the amount of tax payable. In the U.S., gains on assets that have been held for more than a year before being sold are classified as long-term capital gains, and are taxed at a more favorable rate than short-term capital gains.

RELATED TERMS
  1. Tax Code

    A federal government document, numbering tens of thousands of ...
  2. Long-Term Capital Gain Or Loss

    A gain or loss from a qualifying investment owned for longer ...
  3. Capital Dividend Account - CDA

    A special corporate tax account which gives shareholders designated ...
  4. Short-Term Gain

    A capital gain realized by the sale or exchange of a capital ...
  5. Phantom Gain

    A situation that arises when a gain on an investment is offset ...
  6. Capital Gain

    1. An increase in the value of a capital asset (investment or ...
RELATED FAQS
  1. What are unrealized gains and losses?

    An unrealized loss occurs when a stock decreases after an investor buys it, but he or she has yet to sell it. If a large ... Read Full Answer >>
Related Articles
  1. Retirement

    Tax Tips For The Individual Investor

    We give you seven guidelines to help you keep more of your money in your pocket.
  2. Investing Basics

    Tax-Loss Harvesting: Reduce Investment Losses

    The option to bolster after-tax stock returns through tax-loss harvesting can reverse investor gloom.
  3. Taxes

    Capital Gains Tax 101

    Find out how taxes are applied to your investment returns and how you can reduce your tax burden.
  4. Active Trading

    Seek Out Past Losses To Uncover Future Gains

    Tax loss carry-forwards can help reduce the tax burden of owning a profitable fund.
  5. Professionals

    'Tis The Season For Tax-Loss Harvesting

    With the end of the year upon investors are looking for ways to reduce their tax bill. One tactic that is often used is tax-loss harvesting.
  6. Investing

    Understanding Capital Gains

    Capital gain refers to the increase in value of a capital asset or an investment security upon sale. In other words, if you buy company stock, real estate or fine art and then sell it for more ...
  7. Retirement

    Rolling Over Company Stock: A Decision To Think Twice About

    It may be more beneficial for you to pay tax now than deferring it to an IRA. We show you how and why.
  8. Retirement

    Discover Master Limited Partnerships

    These unique investments provide significant tax advantages.
  9. Options & Futures

    How Restricted Stock And RSUs Are Taxed

    This form of executive compensation limits how these stocks can be sold. Find out more here.
  10. Taxes

    Understanding Taxation Of Foreign Investments

    Technically, any gains from foreign investments owned by an American citizen are subject to tax by the company's home country as well as the IRS. However, the Foreign Tax Credit enables you to ...

You May Also Like

Hot Definitions
  1. Risk Averse

    A description of an investor who, when faced with two investments with a similar expected return (but different risks), will ...
  2. Fixed-Charge Coverage Ratio

    A ratio that indicates a firm's ability to satisfy fixed financing expenses, such as interest and leases. It is calculated ...
  3. Efficiency Ratio

    Ratios that are typically used to analyze how well a company uses its assets and liabilities internally. Efficiency Ratios ...
  4. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  5. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  6. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
Trading Center