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capital gains tax

capital gains tax

47 5.4
A tax on the profit you make when you sell things like stocks or property
  • noun
  • /ˈkæpɪtl ɡeɪnz tæks/
  • Specialized
translation icon : impuesto sobre las ganancias de capital
  • The government recently announced a new capital gains tax on profits from the sale of property.
  • capital gains tax rate
  • lower capital gains tax

This allows capital gains taxes to be deferred, AKA push till later.

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Examples

  • Investors need to consider the impact of the capital gains tax when selling their stocks.

  • Our problem with angel activity is a byproduct of our high capital gains tax rate.

    Academic text (1999)
  • The problem we have is the capital gains tax rate.

    Academic text (1999)
  • First of all, the capital gains tax rate is much lower in the United States than in Canada.

    Academic text (1999)
  • And you know, for most people, capital gains tax is like a once in a decade event.

  • If we sell it, we'll have to pay - capital gains taxes.

  • Of course, the capital gains taxes you pay on your "gain" will increase this loss.

    Blog text (5)
  • There is no sales tax, no VAT, no capital gains tax, and no tax on dividend income.

    Blog text (5)
  • Demand drives investment, not the existence of a lower capital gains tax rate.

    Blog text (18)
  • The top marginal capital gains tax rate has not changed as much.

    Blog text (1)

Surface Forms

Morphology

capital + gain + tax

The meaning is directly built from the constituents: 'capital' (money/assets) + 'gains' (profits) + 'tax' (government charge), so 'a tax on profits from capital' is predictable from the parts. Although somewhat technical, the modifier + noun + tax pattern (X tax) is common cross‑linguistically, so a B1 learner who knows the component words and context will typically infer the meaning.

Etymology

Capital gains tax comes from the words capital, meaning your money or things you own, and gains, meaning the extra money you get when you sell them. So, capital gains tax is a tax on the 'profit' you make when you sell assets like stocks or a house.