What does net capital gain mean on the CPA exam?
Net capital gain. Net long-term capital gain minus net short-term capital loss. This is the figure the preferential rate applies to. Capital gain net income, defined two paragraphs earlier, is a different quantity with a nearly identical name.
Defined against Sec. 1222(11).
Which CPA exam sections use net capital gain?
Net capital gain appears in the REG section of the CPA exam.
Related terms
- capital gain net income: Capital gains minus capital losses for the year, long-term and short-term combined.
- capital loss: Loss on the sale of a capital asset.
- net income: What is left after every revenue and expense of the period, including tax and discontinued operations.
- bargain purchase gain: The gain recognized when identifiable net assets acquired exceed what was paid.
- recognized gain: The part of realized gain that actually goes on the return this year.
- capital assets: In GOVERNMENTAL reporting, long-lived assets such as land, buildings and infrastructure.