Talk:Capital gains tax

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[edit] Question

I have a question: is capital gains realised from buying/selling of foreign exchange taxable?

Well, that pretty much depends on where you are from. In the UK the answer is yes, as long as these gains are sufficiently large. Your holiday money is exempt, but if you buy US$1m speculatively and sell it for a one-off profit, you will pay CGT on the gain. However, if you are a currency trader you will be taxed on your profits but not on the capital gains, jguk 16:46, 1 May 2005 (UTC)

Do you pay CGT in your country of residents or in the country where you made the gain? ie. I sell an investment in the UK, but I am resident in Ireland. Where do I pay the tax? Seabhcán 12:32, 8 November 2005 (UTC)

[edit] Further clarification

I believe there might need to be further clarification necessary in the "countries" section For instance, for Switzerland it says, "There is no capital gains tax in Switzerland." Some might take that to mean that capital gains are tax free, while it seems to me that that means capital gains are taxed as ordinary income, or at the marginal tax rate. RoshSok 15:57 EST, 12 April 2006 (UTC)

• I agree, such statements should be more specific. Either capital gains are taxed as ordinary income or they are exempt from taxation. -Nathanpatterson 21:05, 14 August 2006 (UTC)

[edit] How does one get the 15% long-term CGT rate in the U.S.?

The article says that the long-term CGT rate for those in the highest bracket is 15%. But I cannot see how a taxpayer could enjoy that lower rate from a look at the tax forms. It looks like the taxpayer is taxed at his/her normal tax rate, not a special CG rate.

In IRS Form 1040 Schedule D ("Capital Gains and Losses"), long-term CG are listed in Part II, and totaled on line 15. Line 15 is added to Line 7, the short-term CG total, to get Line 16. If there is a longterm gain, and no short-term loss, then the taxpayer is instructed to enter the total from Line 16 onto Form 1040, Line 13. All the income on Form 1040 appears to be taxed at the taxpayer's normal rate, not the capital gains rate. What am I missing? -66.90.186.134 13:07, 17 August 2006 (UTC)