Dictionary of Banking Terms: capital gain (or loss)
capital gain (or loss)
difference between selling price of an asset and its cost when purchased. If the difference is positive, a gain is realized; if negative, a loss results. Long-term capital gains are taxed a maximum rate of 20% for taxpayers in the 28% tax bracket or higher, and at 15% for those in the 15% tax bracket, according to the 1997 Taxpayer Relief Act. Assets purchased after January 1, 2000 and held at least five years qualify for a maximum capital gain tax of 18% for those in the 28% tax bracket, and 8% for those in the 15% tax bracket.
