Capital Gains Tax
Capital Gains Tax (CGT) is a tax on the profit made from selling an asset, such as stocks, real estate, or business property. In corporate tax law, when a company sells an asset for more than it paid, the profit—known as a capital gain—is subject to taxation. This means that companies must report and pay taxes on this income when filing their tax returns. The tax rate on capital gains can vary based on how long the asset has been held and other factors, impacting the overall tax liability for the corporation.
Additional Insights
-
Capital gains tax is a tax on the profit you make when you sell an asset, such as stocks, real estate, or other investments, for more than you paid for it. For example, if you buy a house for $200,000 and sell it for $300,000, your profit of $100,000 is subject to capital gains tax. The tax rate can vary based on how long you've held the asset; shorter-term holdings often face higher rates than long-term ones. This tax is important for government revenue and can influence investment decisions.