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)
“Theodotus: Caesar: once in ten generations of men, the world gains an immortal book. Caesar: If it did not flatter mankind, the common executioner would burn it.”
—George Bernard Shaw (1856–1950)
“If you tax too high, the revenue will yield nothing.”
—Ralph Waldo Emerson (1803–1882)