0
Capital Gain
A capital gain is the income from an investment. When a capital asset increases in value, the capital gain is equal to the higher selling price minus the amount you paid for it. Capital assets include stock, bonds, and real estate.
135 Questions
What is the difference of capital and investment?
Difference between capital and investment:
- Capital is the total money made by a business before subtracting its expenses, such as electricity bills and staff wages. It includes the money made from sales as well as income from shares - how much shareholders have invested into the business.
- Investments, however, are the money a person or group of people put into a business; when the business makes a profit they will receive money relevant to the amount first invested.
If a person invests into a public or private limited company (listed) they will receive a dividend that is relative to the company's profit for that month, as well as proportional to the individual's investment.
An investment can also be made by a sole trader or members of a partnership when they first set up their business, and the money will return to them if their business goes on to make a proit - they can also lose all the money they invested, as well as some of their personal assets, if the business fails.
Hope that helps (Y)
Do you pay capital gain tax on stocks in loss?
You would NOT have a capital gain tax to pay when you have a loss on the sale of stock.
You WILL HAVE to report the transaction on the schedule D of the 1040 tax form and up to 3000 of loss for the year will be used to offset up to 3000 of ordinary income for the year any amount of the remaining loss will then be carried over to the next years until the loss is completely used up.
First...this may be the best question I've seen in a long time! The real answer should be...regardless of when...the finance guys that did this and spanned the year, should be lined up, waterboarded before being forced to walk across a shallow lake filled with hungry piranah! I'm going to continue thinking (and researching it)...as i suspect there are some cases directly on point...although I wouldn't be surprised to find there are conflicting answers there too. The concept of "constructive receipt" is very big in taxation (and presuming your a cash basis taxpayer as most people are), the concept doesn't always mesh perfectly with that. And in this case, I can see there is a strong arguments for there having been constructive receipt at the ex-div date....BUT I think there is a much stronger one that there wasn't constructive receipt until the pay date (regardless of when the pay was actually received). I believe the ex div date just becomes the day the Corp acknowleges/records it's obligation to pay (as it does with virtually all expenses it can anticipate), and the pay date the day it the bill becomes payable. Hence, the Corp., presumably an accrual taxapayer, has the expense (albeit there is normally no tax deduction for dividends), as accrued...but the recepient...a cash basis one, may not have the income until the obligation is due and paid. Finally, I suspect this will all come out and be shown in the correct reporting period on the 1099 DIV the company must report. Follow that for your own return.
Is profit is generally adequate to finance the significant growth of a company?
A company's profits are a key method to finance growth by using those profits into research & development.
Should a company require more funding to finance growth, then issuing corporate bonds and - or taking out loans will augment the funds needed for research & development.
Growth can also be funded by buying another company which has large cash reserves and or products that are very profitable. Here, the buying company must make an attractive offer and create the financing to make this deal work.
Is capital gain a corporate action?
Yes it is a Corporate Action.The capital gains distribution is the process utilized to remit the proper amount of net gains on capital investments to each of the investment company shareholders that are eligible for a return on their investment.
Is capital gain included in GDP?
No. GDP does not include capital gains.
See page two of this report from the congressional budget office:
http://www.cbo.gov/sites/default/files/cbofiles/ftpdocs/38xx/doc3856/taxbrief2.pdf
What the meaning of blanket overhead rate?
Blanket overhead rate is the computation of a single overhead rate for one whole factory. Overhead rate is the percentage you get when comparing total overhead expenses to total expenses.
What is the capital gain tax on a home sale?
Capital gain tax's applies to the moneys that you make on top (profit) of what you paid for the house ... and that would depend on what state you live in ...
A capital dividend is a special dividend paid to shareholders of a corporation out of capital gains income produced from the sale of property.
What is considered capital improvements in a house?
Capital improvements to a house are significant renovations or upgrades that enhance the property's value, extend its useful life, or adapt it for new uses. Examples include adding a new roof, installing a new heating system, remodeling a kitchen or bathroom, or developing additional living space, such as finishing a basement. These improvements typically require substantial investment and are intended to provide long-term benefits rather than routine maintenance or repairs.
How to calculate capital gain tax?
If this is a business asset then you will have to use the 1040 tax form 4797 to report the transaction on.
You will use the information that is on the 1099-B to report the transaction on your 1040 tax form.
If this is personal property (non-business) and you have owned it for more than one year and it is sold at a gain. You will have a long term capital gain (LTCG) that will be taxed at the 0% to 15% maximum capital gain tax rate.
The transaction will be reported on the schedule D of the 1040 tax form.
When you complete the schedule D all the way through line by line the LTCG will be taxed at the 0% to 15% maximum capital gain rate. You will have to complete the schedule D worksheet on page 10 of the schedule D instruction book all the way through line 36 as that will be where the tax numbers will come from to go on line 44 of your tax return.
For forms and instruction go to IRS gov website and use the search box for schedule D and you will find the instructions and form that you would use for this purpose.
If you sell a stock exactly one year later is that a long term capital gain?
Has to held MORE than one year to be a LTCG.
One year or less the sale would be a short term gain.
Can Schedule A Losses be offset against a Capital Gain?
Schedule A itemized deductions losses of the 1040 tax form would be entered on page 2 line 40a of the 1040 tax form.
They losses would not have anything to do with the offsetting of capital gain and loss on the schedule D of the 1040 tax form.
If you sell stock do you owe tax on the capital gain of the stock?
Yes it is possible that you could owe some long term or short term capital gain taxes on the sale of the securities, stocks bonds, etc using the information from the 1099-B that you have in your hand to report the transaction on your 1040 income tax return.
The transaction will be reported on the schedule D of the 1040 tax form.
When you complete the schedule D all the way through line by line the LTCG will be taxed at the 0% to 15% maximum capital gain rate. You will have to complete the schedule D worksheet on page 10 of the schedule D instruction book all the way through line 36 as that will be where the tax numbers will come from to go on line 44 of your tax return.
For forms and instruction go to the IRS gov web site and use the search box for schedule D
For 2009, long-term capital gains and qualified dividends are taxed at 0% for individuals in the 15% tax bracket above the 15% marginal tax rate the maximum long term capital gain tax rate of 15% will apply.
How much is the Tax amount on a reportable capital gain of 33200.00?
You will not know this until you have completed your income tax return correctly.
For the tax year 2009 long term capital gains on the sale of securities, stocks and bond that are reported on the schedule D of the 1040 tax form by a individual taxpayer is taxed at the -0-% to 15% maximum LTCG rate.
