What is Long Term Capital Gain ?
Long-term capital gain refers to the profit realized from the sale of an asset that has been held for more than one year. This type of gain is subject to special tax treatment in many jurisdictions, often resulting in lower tax rates compared to short-term capital gains. Investors and individuals can benefit from long-term capital gains tax advantages as an incentive for holding onto assets for an extended period. Assets that commonly generate long-term capital gains include stocks, bonds, real estate, and certain types of collectibles. Understanding and utilizing long-term capital gains tax rates can play a significant role in investment strategies and financial planning, allowing individuals to maximize their after-tax returns on investments over time.
How to Calculate Long Term Capital Gain?
Long Term Capital Gain calculator uses Long Term Capital Gain = Final Sale Price-Indexed Cost of Acquisition-Indexed Cost of Improvement-Cost of Transfer to calculate the Long Term Capital Gain, The Long Term Capital Gain refers to the profit earned from selling an asset held for more than a year, often taxed at lower rates than short-term gains in many tax jurisdictions. Long Term Capital Gain is denoted by CGlt symbol.
How to calculate Long Term Capital Gain using this online calculator? To use this online calculator for Long Term Capital Gain, enter Final Sale Price (SP), Indexed Cost of Acquisition (ICOA), Indexed Cost of Improvement (ICOI) & Cost of Transfer (COT) and hit the calculate button. Here is how the Long Term Capital Gain calculation can be explained with given input values -> 800000 = 2500000-1000000-500000-200000.