Short Term Capital Gain Formula

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Short Term Capital Gain refers to the profit earned from selling an asset held for one year or less, subject to higher tax rates than long-term gains in many tax jurisdictions. Check FAQs
CGst=SP-COA-HIC-COT
CGst - Short Term Capital Gain?SP - Final Sale Price?COA - Cost of Acquisition?HIC - Home Improvement Cost?COT - Cost of Transfer?

Short Term Capital Gain Example

With values
With units
Only example

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

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

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

500000Edit=2.5E+6Edit-1.5E+6Edit-300000Edit-200000Edit
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Short Term Capital Gain Solution

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

FIRST Step Consider the formula
CGst=SP-COA-HIC-COT
Next Step Substitute values of Variables
CGst=2.5E+6-1.5E+6-300000-200000
Next Step Prepare to Evaluate
CGst=2.5E+6-1.5E+6-300000-200000
LAST Step Evaluate
CGst=500000

Short Term Capital Gain Formula Elements

Variables
Short Term Capital Gain
Short Term Capital Gain refers to the profit earned from selling an asset held for one year or less, subject to higher tax rates than long-term gains in many tax jurisdictions.
Symbol: CGst
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.
Cost of Acquisition
Cost of Acquisition refers to the total expenses incurred in obtaining an asset, including purchase price, taxes, fees, and other associated costs.
Symbol: COA
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Home Improvement Cost
Home Improvement Cost refers to the total expenses incurred in renovating, upgrading, or repairing a residential property to enhance its functionality, aesthetics, or value.
Symbol: HIC
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 Short Term Capital Gain?

Short Term Capital Gain evaluator uses Short Term Capital Gain = Final Sale Price-Cost of Acquisition-Home Improvement Cost-Cost of Transfer to evaluate the Short Term Capital Gain, The Short Term Capital Gain refers to the profit earned from selling an asset held for one year or less, subject to taxation at ordinary income tax rates. Short Term Capital Gain is denoted by CGst symbol.

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

FAQs on Short Term Capital Gain

What is the formula to find Short Term Capital Gain?
The formula of Short Term Capital Gain is expressed as Short Term Capital Gain = Final Sale Price-Cost of Acquisition-Home Improvement Cost-Cost of Transfer. Here is an example- 500000 = 2500000-1500000-300000-200000.
How to calculate Short Term Capital Gain?
With Final Sale Price (SP), Cost of Acquisition (COA), Home Improvement Cost (HIC) & Cost of Transfer (COT) we can find Short Term Capital Gain using the formula - Short Term Capital Gain = Final Sale Price-Cost of Acquisition-Home Improvement Cost-Cost of Transfer.
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