Taxable Gain

Posted in Finance, Accounting and Economics Terms, Total Reads: 965
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Definition: Taxable Gain

If tax is applicable on a the profit derived from a sale of an asset/security/investment, it is called taxable gain. 

Taxable gain is the difference between the selling price of a security and purchase price.

Example

I bought shares at 10$. Total shares bought were 1000. After let us say 5 months, the price of one share was 20$ and i sold all 1000.

My gain would be 1000(20-10)=10000$.

This is now taxable.


For gain to be taxable, the shares or securities actually needed to be sold in the market. Without actual sale, the concept does not hold.

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