What are capital gains?

Capital gains are a profit that results from the valuation of the capital asset. The profit comes from the value of the assets from its purchase price. If the Item depreciation value from its purchase is called the capital loss. Capital gains may occur in assets such as assets or goods, as well as in financial assets such as stocks or bonds. Everything you sell for more than a real purchase price, which results in capital gains can be taxable. Capital loss is not tax -deductible. If the asset will be appreciated and sold within one year of the purchase, the tax rate is the same as for a normal income that can increase to 35%in the progressive tax system. It is considered to be short -term profits from capital. If the award -winning asset is sold after a year of purchase, profitable capital gains are considered. The asset will be taxed at a maximum rate of 15%. It is known that unrealized assets have appreciated value, but have not yet been sold. Capital gain is a potential value. RealizedApital gain occurs when the asset is appreciated and sold.

Although capital gains are subject to tax, there is also a way to counteract any capital losses that occurred during the year. This is called Offset for loss of capital . You can compensate your capital profit your capital loss tax to reduce taxes. If losses are higher than profits, you can deduct up to $ 3,000 (USD) to compensate for normal income.

Many countries have their own rules on taxation of capital gains. Some countries allow you to earn a certain amount of income from your capital from somewhere you have been subject to tax. In America, an individual may exclude $ 250,000 for profits from the sale of real estate if the property was a primary stay for two to five years before the sale. Two years of stay may not be continuous and the exception is for $ 500,000 if a couple ownl Real estate. There are many rules and exceptions that are clarified on the Internal Revenue Service website.