Capital Gains Tax (Noun)
Meaning
A tax on capital gains; "he avoided the capital gains tax by short selling".
Classification
Nouns denoting possession and transfer of possession.
Examples
- He invested wisely and avoided the capital gains tax by using tax-loss harvesting to offset his profits.
- To reduce their capital gains tax, they chose to sell some of their shares over several years instead of all at once.
- By understanding the implications of the capital gains tax, the financial advisor could guide his clients on when to buy or sell investments.
- To avoid incurring capital gains tax on their primary residence, they ensured it was their home for more than two out of the past five years.
- Many traders lost a substantial portion of their profit due to failure to factor the capital gains tax into their strategy.