Trish & Cheryl Niagara on the Lake RealtyNiagara-on-the-Lake Realty

Office 905-262-6996 | EMAIL info@homesnotl.ca |  

DEFINITION of 'Capital Gain'

1. An increase in the value of a capital asset (investment or real estate) that gives it a higher worth than the purchase price. The gain is not realized until the asset is sold. A capital gain may be short term (one year or less) or long term (more than one year) and must be claimed on income taxes. A capital loss is incurred when there is a decrease in the capital asset value compared to an asset's purchase price.


2. Profit that results when the price of a security held by a mutual fund rises above its purchase price and the security is sold (realized gain). If the security continues to be held, the gain is unrealized. A capital loss would occur when the opposite takes place.

INVESTOPEDIA EXPLAINS 'Capital Gain'

1. Long-term capital gains are usually taxed at a lower rate than regular income. This is done to encourage entrepreneurship and investment in the economy.


2. Tax conscious mutual fund investors should determine a mutual fund's unrealized accumulated capital gains, which are expressed as a percentage of its net assets, before investing in a fund with a significant unrealized capital gain component. This circumstance is referred to as a fund's capital gains exposure. When distributed by a fund, capital gains are a taxable obligation for the fund's investors.



  Hobby Farms

Looking at buying a property with a little bit of land to keep you busy?  A hobby farm could be the ticket.  Check out what is currently for sale in Niagara-on-the-Lake

  Wineries For Sale

A winery is a romantic dream for some but a reality for others.  Please contact us for wineries for sale in Niagara-on-the-Lake and Niagara Region.

  Retiring to Niagara-on-the-Lake

Looking to retire to Niagara-on-the-Lake?  Come and check-out what Niagara-on-the-Lake has to offer you.  Very active New Comers Association in town.

  Bed & Breakfasts

A bed and breakfast is a great way to entertain guests in your own home.  Check out what is for sale in Niagara-on-the-Lake.

  New Developments

New Developments in Old Town, St.Davids, Virgil and Queenston.

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