Long Term Capital Gain Solution

STEP 0: Pre-Calculation Summary
Formula Used
Long Term Capital Gain = Final Sale Price-Indexed Cost of Acquisition-Indexed Cost of Improvement-Cost of Transfer
CGlt = SP-ICOA-ICOI-COT
This formula uses 5 Variables
Variables Used
Long Term Capital Gain - Long Term Capital Gain refers to the profit earned from selling an asset held for more than one year, often taxed at lower rates compared to short-term gains in many tax systems.
Final Sale Price - Final Sale Price is the total amount paid by a buyer to acquire a property or asset at the conclusion of a sales transaction.
Indexed Cost of Acquisition - Indexed Cost of Acquisition is the adjusted purchase price of an asset accounting for inflation using an indexation method, often used to calculate long-term capital gains tax.
Indexed Cost of Improvement - Indexed Cost of Improvement is the adjusted expenditure on enhancing a property, factoring in inflation using an indexation method, commonly utilized for calculating long-term capital gains tax.
Cost of Transfer - Cost of Transfer refers to the expenses associated with transferring ownership of an asset or property from one party to another, including fees, taxes, and legal costs.
STEP 1: Convert Input(s) to Base Unit
Final Sale Price: 2500000 --> No Conversion Required
Indexed Cost of Acquisition: 1000000 --> No Conversion Required
Indexed Cost of Improvement: 500000 --> No Conversion Required
Cost of Transfer: 200000 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
CGlt = SP-ICOA-ICOI-COT --> 2500000-1000000-500000-200000
Evaluating ... ...
CGlt = 800000
STEP 3: Convert Result to Output's Unit
800000 --> No Conversion Required
FINAL ANSWER
800000 <-- Long Term Capital Gain
(Calculation completed in 00.020 seconds)

Credits

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Created by Keerthika Bathula
Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad
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IGNOU (IGNOU), India
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Long Term Capital Gain Formula

​LaTeX ​Go
Long Term Capital Gain = Final Sale Price-Indexed Cost of Acquisition-Indexed Cost of Improvement-Cost of Transfer
CGlt = SP-ICOA-ICOI-COT

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.

FAQ

What is 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 and is represented as CGlt = SP-ICOA-ICOI-COT or Long Term Capital Gain = Final Sale Price-Indexed Cost of Acquisition-Indexed Cost of Improvement-Cost of Transfer. Final Sale Price is the total amount paid by a buyer to acquire a property or asset at the conclusion of a sales transaction, Indexed Cost of Acquisition is the adjusted purchase price of an asset accounting for inflation using an indexation method, often used to calculate long-term capital gains tax, Indexed Cost of Improvement is the adjusted expenditure on enhancing a property, factoring in inflation using an indexation method, commonly utilized for calculating long-term capital gains tax & Cost of Transfer refers to the expenses associated with transferring ownership of an asset or property from one party to another, including fees, taxes, and legal costs.
How to calculate 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 is calculated using Long Term Capital Gain = Final Sale Price-Indexed Cost of Acquisition-Indexed Cost of Improvement-Cost of Transfer. To calculate Long Term Capital Gain, you need Final Sale Price (SP), Indexed Cost of Acquisition (ICOA), Indexed Cost of Improvement (ICOI) & Cost of Transfer (COT). With our tool, you need to enter the respective value for Final Sale Price, Indexed Cost of Acquisition, Indexed Cost of Improvement & Cost of Transfer and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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