capital gains tax

[ˈkæpɪtəl ɡeɪnz tæks]
nounpl: capital gains taxes
imposto sobre ganhos de capital
1. A tax levied on the profit realized when a capital asset is sold or disposed of, calculated as the difference between the selling price and the original purchase price
She paid capital gains tax when she sold her investment property for a profit.
Ela pagou imposto sobre ganhos de capital quando vendeu sua propriedade de investimento com lucro.
2. A form of income tax applied to investment returns from the sale of stocks, real estate, bonds, or other assets
Long-term capital gains tax rates are typically lower than short-term rates.
As alíquotas de imposto sobre ganhos de capital de longo prazo são tipicamente menores que as de curto prazo.
In the United States, capital gains tax is a significant tax consideration for investors and is central to tax planning strategies. The tax rate varies based on holding period (long-term vs. short-term) and income level. In Brazil, the tax on investment returns is administered through the Imposto de Renda (IR) system and applies to various investment vehicles including stocks, real estate, and bonds. Portugal's 'imposto sobre mais-valias' applies to capital appreciation in similar ways but with its own specific rules and rates.
Synonyms / Sinônimos
gains taxinvestment taxprofit tax on investments
Antonyms / Antônimos
capital loss deductiontax exemption

Regional Variations

General Brazilian
imposto sobre ganhos de capital
Most common term in Brazil; also referred to as 'IR sobre ganhos de capital' (Imposto de Renda)
São Paulo
imposto sobre ganhos de capital / IR sobre investimentos
Used in financial centers; investors commonly reference this for stock market transactions
Portugal
imposto sobre mais-valias
Portuguese equivalent; 'mais-valia' literally means 'surplus value' or 'appreciation'
United States
capital gains tax
Federal tax with rates varying by holding period (long-term: 0%, 15%, 20%; short-term: ordinary income rates)

Related Words

capital gaincapital lossinvestment incomeasset appreciationtax bracketholding periodrealized gain

Related Idioms & Phrases

to realize a capital gain
long-term capital gains
short-term capital gains
wash sale rule
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