I so confused about capital gain, and capital one....I read some of the other answers but end up more confused...can someone explained as if i was 5...please...
2007-09-29 19:51:46 · 5 answers · asked by Carmen l 1 in Business & Finance ➔ Small Business
Capital gain is really easy. It's any investment you made, that you sell and made a profit on, that you held for over 1 year.
Could be real estate, stocks, bonds, whatever.
2007-09-29 19:58:28 · answer #1 · answered by Uncle Pennybags 7 · 0⤊ 0⤋
When a person sells a Capital Asset and make profit, is called CAPITAL GAIN. A asset may not be Capital asset for all. For example, if you buy and sell Shares regularly and earn profit or loss, it will be your Trading Profit or Loss and on other hand if you invest in shares for longtime and hold shares for more than one year and sell the same, the gain or loss earned by you will be Capital Gain or Capital Loss.
2007-09-30 04:56:07 · answer #2 · answered by LALU A 1 · 0⤊ 0⤋
Capital gain is easy:
The technical definition is-the gain realized when an asset (house, car, stock, bond, etc.) appreciates to a value over the value that it was originally acquired at, and then sold for that appreciated value. That difference in value is your "capital gain" amount. In other words, the positive change in your capital that occurred from that event.
Example 1 - you buy a house for $200,000, 3 years later, you sell the house for $250,000. Your capital gain from owning and selling that asset is $50,000.
Example 2 - you buy a share of stock for $30, a week later you sell that share of stock for $50. Your capital gain is $20 from the sale of that asset.
It's that simple.
Capitol One is a corporation that issues credit cards. They have nothing to do with capital gains.
2007-09-30 11:24:54 · answer #3 · answered by truttman 3 · 0⤊ 0⤋
You bought a candy bar last week for 5 cents. This week that same candy bar is worth 7 cents and now you want to sell. You make a 2 cent profit and that's your capital gain. The government that can put you in jail wants a part of that 2 cent profit.
2007-09-30 03:01:12 · answer #4 · answered by Anonymous · 0⤊ 0⤋
okay nice and simply .. if you buy a painting at $50.000 and sell it at $60,000 dollars you have gained 10% on your capital .. this called capital gains .. in Australia you are entitled to a certain allowance for capital gains each year, which can be carried forward upto 7 years .. then you are subject to capital gains tax .. for example I buy a painting at 50,000.
sell at 60,000 that's 10,000 capital gains .. do similar for next six years I have gained $70,000 on my capital and since the allowance (in Australia) is 7,000 per year I am liable to a tax bill on the residual - in this cae 70,000 less my allowance of 49,000 so tax on 21,000 equals about 6,300
these figures are approximate and subject to cahnge depending on my other earnings and allowances
2007-09-30 03:03:34 · answer #5 · answered by The old man 6 · 0⤊ 0⤋