A capital gains tax (CGT) is a tax on capital gains, the profit realized on the sale of a non-inventory asset that was purchased at a cost amount that was lower than the amount realized on the sale. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property. Not all countries implement a capital gains tax and most have different rates of taxation for individuals and corporations.
For equities, an example of a popular and liquid asset, national and state legislation often has a large array of fiscal obligations that must be respected regarding capital gains. Taxes are charged by the state over the transactions, dividends and capital gains on the stock market. However, these fiscal obligations may vary from jurisdiction to jurisdiction.
Read more about Capital Gains Tax: Deferring or Reducing Capital Gains Tax
Famous quotes containing the words capital, gains and/or tax:
“Oh, a capital ship for an ocean trip,
Was the Walloping Window Blind;
No gale that blew dismayed her crew
Or troubled the captain’s mind.”
—Charles Edward Carryl (1841–1920)
“An alliance is like a chain. It is not made stronger by adding weak links to it. A great power like the United States gains no advantage and it loses prestige by offering, indeed peddling, its alliances to all and sundry. An alliance should be hard diplomatic currency, valuable and hard to get, and not inflationary paper from the mimeograph machine in the State Department.”
—Walter Lippmann (1889–1974)
“If you tax too high, the revenue will yield nothing.”
—Ralph Waldo Emerson (1803–1882)