Capital Gains Tax: A distribution to the shareholders of a mutual fund out of profits from selling stocks or bonds, that is subject to capital gains taxes for the shareholders.

 

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Capital Gains Tax: A distribution to the shareholders of a mutual fund out of profits from selling stocks or bonds, that is subject to capital gains taxes for the shareholders.

Taxable Income: An event or transaction that has a tax consequence, such as the sale of stock holding that is subject to capital gains taxes.

Tax-Timing Option: Legislation forming part of a larger act designed to balance the federal budget. Some of the legislation's provisions included tax credits for taxpayers supporting children, an increase in t . . . View Full Definition

Capital Gain: When you sell an asset at a higher price than you paid for it, the difference is your capital gain. For example, if you buy 100 shares of stock for $20 a share and sell them for $30 a share, . . . View Full Definition

Tax Reform Act Of 1984: Legislation aimed at tightening provisions relating to taxation, including changes in the capital gains tax laws.

Capital Gains Tax (CGT): A capital gains tax is due on profits you realize on the sale of a capital asset, such as stock, bonds, or real estate. Long-term gains, on assets you own more than a year, are taxed at a lo . . . View Full Definition

Taxpayer Relief Act Of 1997 (TRA 97): Enacted by the United State Congress and effective May 7, 1997, TRA 97 provides for broader exemption from capital gains taxes on the profits on the sale of a personal residence. Replaces th . . . View Full Definition

Tax Differential View (Of Dividend Policy): Allowing the capital gains tax on an asset to be payable only when the gain is realized by selling the asset.

Sales Tax Payable: Money collected from customers for sales taxes, that must be remitted to local governments and other taxing authorities.

Tax Codes: Under the PAYE system of taxing income, tax codes are allocated annually to employees. These codes enable the employer to deduct tax at the correct rate from salaries or wages on a monthly ( . . . View Full Definition