What is Capital gains tax • Capital gain • Finance ?

Capital gains tax is a tax on the profit earned from the sale of an asset, such as stocks, bonds, or real estate. Capital gain refers to the difference between the selling price and the original purchase price of the asset. If the selling price is higher than the purchase price, then a capital gain has been realized. Capital gains tax is typically imposed by governments to raise revenue and to discourage speculation or short-term investments.

TEX GOVERNMENTS

e typeThe rate of capital gains tax varies by country and depends on factors such as th of asset sold, the holding period, and the tax bracket of the taxpayer. In some countries, there may be different rates for short-term and long-term capital gains, with long-term gains often being taxed at a lower rate to encourage long-term investment. In finance, capital gains are an important source of returns for investors. When an investor buys an asset with the intention of holding it for a period of time and then selling it at a higher price, any profit from the sale is a capital gain.

CAPITAL GAINS TAX


Capital gains can be realized in various types of assets, including stocks, bonds, real estate, and collectibles. Investors often consider the potential for capital gains when making investment decisions, and they may factor in the expected capital gains tax when calculating the after-tax return on their investment. thug life

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