if you get a 5% long term capital gain what is it based on the value of the stock price?
- StephenWeinsteinLv 710 months ago
What you got for the stock when you sold it (proceeds) minus what you paid for it when you bought it (basis).
- JudyLv 710 months ago
sale price minus basis. Basis is purchase price adjusted for any splits, reinvested dividends you already paid the tax on, and commissions.
- Russ in NOVALv 710 months ago
In simple terms, capital gain is the difference between the current price and the price the stock was bought at. So a 5% capital gain for a stock means it is now worth 5% more than when it was purchased. For example if the stock was bought at $50 and is now worth $52.50, it has a 5% capital gain. The capital gain is not "realized" until the stock is actually sold.
"Long term" means that it was purchased more than a year ago.
- Anonymous10 months ago
Capital gains is the selling price (minus commissions) minus the purchase price (plus commissions).
So if you sell stocks for say $10000 and it costs you $50, your net money is $9950.
If you purchased that same stock for $7500 and again, you paid $50, your cost basis is $7550.
Your capital gains in this case is $9950 - $7550 = $2200. Your capital gains as a percentage is $2200 / $7750 * 100 = 28.4%.