Capital Gains

Capital gains are profits realized from selling property at a price higher than the adjusted purchase cost, taxable in most jurisdictions but not in UAE.

Calculation ComponentTreatment
Sale priceGross proceeds from transaction
Purchase priceOriginal acquisition cost
Capital improvementsDeduct from gain (not repairs)
Transaction costsDeduct buying and selling costs
Holding periodDetermines short-term vs long-term
Net capital gainTaxable profit
Tax Treatment by JurisdictionRate
UAE0% (no capital gains tax)
UK (non-resident)18% to 28% on residential
US (long-term held over 1 year)0% to 20% federal plus state
Canada50% inclusion rate at marginal rate
Germany (held under 10 years)Progressive rates up to 45%
Singapore0% (generally no capital gains tax)

Related Terms

Capital AppreciationTax TreatmentCost BasisTotal Return

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