What Is a Capital Gains Deduction?

Capital gains refer to the balance of income derived from the sale of capital items such as stocks, bonds or real estate after deducting their book value. Some countries impose a profit tax on capital gains, which is calculated based on the difference between the purchase price of the capital account and the final sale price and the prescribed tax rate. It is generally believed that the value-added of capital accounts will take several years to accumulate before it can finally be formed. In order to prevent profits tax from affecting investment in the capital market, the tax rate is low, and a proportional tax rate is usually used. ^[1]

Capital gain

Capital gains are assets that are bought low and sold high (such as stocks,

The Commercial Press's English-Chinese Dictionary of Securities Investment Explanation : Capital Gains in English: capita

l gain; capital gains yield. Also for: Capital gains . Investment tools such as stocks, mutual funds, etc. That is, the positive difference between the transfers of disposition and the adjusted cost basis means that the selling price of an investment product is higher than the buying price, that is, the actual income is obtained when it is realized. A form of investment income. Before the assets are not sold, even if capital appreciation can be seen, they can only be regarded as unrealized gains. To encourage investment in their own markets, many countries have the most preferential tax policies. See also: capital gains return ; return on capital gains.