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:
“In bourgeois society capital is independent and has individuality, while the living person is dependent and has no individuality.”
—Karl Marx (1818–1883)
“The professional celebrity, male and female, is the crowning result of the star system of a society that makes a fetish of competition. In America, this system is carried to the point where a man who can knock a small white ball into a series of holes in the ground with more efficiency than anyone else thereby gains social access to the President of the United States.”
—C. Wright Mills (1916–1962)
“In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.”
—Alexis de Tocqueville (1805–1859)