Long Term Capital Gain Formula

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Long Term Capital Gain refers to the profit earned from selling an asset held for more than one year, often taxed at lower rates compared to short-term gains in many tax systems. Check FAQs
CGlt=SP-ICOA-ICOI-COT
CGlt - Long Term Capital Gain?SP - Final Sale Price?ICOA - Indexed Cost of Acquisition?ICOI - Indexed Cost of Improvement?COT - Cost of Transfer?

Long Term Capital Gain Example

With values
With units
Only example

Here is how the Long Term Capital Gain equation looks like with Values.

Here is how the Long Term Capital Gain equation looks like with Units.

Here is how the Long Term Capital Gain equation looks like.

800000Edit=2.5E+6Edit-1E+6Edit-500000Edit-200000Edit
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Long Term Capital Gain Solution

Follow our step by step solution on how to calculate Long Term Capital Gain?

FIRST Step Consider the formula
CGlt=SP-ICOA-ICOI-COT
Next Step Substitute values of Variables
CGlt=2.5E+6-1E+6-500000-200000
Next Step Prepare to Evaluate
CGlt=2.5E+6-1E+6-500000-200000
LAST Step Evaluate
CGlt=800000

Long Term Capital Gain Formula Elements

Variables
Long Term Capital Gain
Long Term Capital Gain refers to the profit earned from selling an asset held for more than one year, often taxed at lower rates compared to short-term gains in many tax systems.
Symbol: CGlt
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Final Sale Price
Final Sale Price is the total amount paid by a buyer to acquire a property or asset at the conclusion of a sales transaction.
Symbol: SP
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Indexed Cost of Acquisition
Indexed Cost of Acquisition is the adjusted purchase price of an asset accounting for inflation using an indexation method, often used to calculate long-term capital gains tax.
Symbol: ICOA
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Indexed Cost of Improvement
Indexed Cost of Improvement is the adjusted expenditure on enhancing a property, factoring in inflation using an indexation method, commonly utilized for calculating long-term capital gains tax.
Symbol: ICOI
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Cost of Transfer
Cost of Transfer refers to the expenses associated with transferring ownership of an asset or property from one party to another, including fees, taxes, and legal costs.
Symbol: COT
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.

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How to Evaluate Long Term Capital Gain?

Long Term Capital Gain evaluator uses Long Term Capital Gain = Final Sale Price-Indexed Cost of Acquisition-Indexed Cost of Improvement-Cost of Transfer to evaluate the Long Term Capital Gain, The Long Term Capital Gain refers to the profit earned from selling an asset held for more than a year, often taxed at lower rates than short-term gains in many tax jurisdictions. Long Term Capital Gain is denoted by CGlt symbol.

How to evaluate Long Term Capital Gain using this online evaluator? To use this online evaluator for Long Term Capital Gain, enter Final Sale Price (SP), Indexed Cost of Acquisition (ICOA), Indexed Cost of Improvement (ICOI) & Cost of Transfer (COT) and hit the calculate button.

FAQs on Long Term Capital Gain

What is the formula to find Long Term Capital Gain?
The formula of Long Term Capital Gain is expressed as Long Term Capital Gain = Final Sale Price-Indexed Cost of Acquisition-Indexed Cost of Improvement-Cost of Transfer. Here is an example- 800000 = 2500000-1000000-500000-200000.
How to calculate Long Term Capital Gain?
With Final Sale Price (SP), Indexed Cost of Acquisition (ICOA), Indexed Cost of Improvement (ICOI) & Cost of Transfer (COT) we can find Long Term Capital Gain using the formula - Long Term Capital Gain = Final Sale Price-Indexed Cost of Acquisition-Indexed Cost of Improvement-Cost of Transfer.
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