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LSDefine

Simple English definitions for legal terms

capital gains

Read a random definition: Rhodian law

A quick definition of capital gains:

Capital gains are profits you make when you sell something you own, like a house or stocks. If you sell it for more than you paid for it, that's a capital gain. If you sell it for less, that's a capital loss. You have to pay taxes on your capital gains, but the amount you pay depends on how long you owned the thing you sold. If you owned it for more than a year, you pay less taxes than if you owned it for less than a year.

A more thorough explanation:

Capital gains refer to the profits earned from selling capital assets. A capital asset is anything that someone owns and uses for personal or investment purposes, such as a home, car, or stocks. When you sell a capital asset, the difference between the cost of the asset and the amount you received from the sale is either a capital gain or a capital loss.

For example, if you bought a stock for $10 and sold it for $15, your capital gain would be $5. If you sold the stock for $8, your capital loss would be $2.

There are two types of capital gains: short-term and long-term. If you held the asset for one year or less, it is considered a short-term capital gain. If you held the asset for more than one year, it is considered a long-term capital gain.

Capital gains are subject to income tax. The tax rate on capital gains depends on whether they are short-term or long-term. As of August 2022, the tax rate on most net capital gain is 15% for most individuals.

For example, if you bought a house for $200,000 and sold it for $300,000 after owning it for three years, your capital gain would be $100,000. If you are in the 15% tax bracket and the gain is long-term, you would owe $15,000 in taxes on the gain.

capital expenditure | capital investment

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NosyBeagle
19:28
Do tell
i had to drop out of a grad program but i explained it in my gpa addendum bc it was the same underlying event causing both
i was also named in a civil lawsuit that got dismissed but only one school asked about it
sorry probably not helpful
ParallelAgreeableOrangutan
19:58
idk what the situations are, but you absolutely should write about them if the school asks about them—the only time you should be asking *whether* to write one is when you're not sure whether your situation qualifies as what they're asking about
ParallelAgreeableOrangutan
19:59
better question is usually *how* to write about them
ParallelAgreeableOrangutan
20:00
I had to write about write
ParallelAgreeableOrangutan
20:01
... write-ups at work (petty, and they were removed from my file after a year, but even so the app asked so I wrote)
NosyBeagle
20:05
Ah it cancelled out my msg cus I switched tabs. But I’ll just tell you guys cus I get mixed answers: a) accused of cheating on a calc exam freshman year but was cleared of wrongdoing, b) sent to the hospital senior year because I go too drunk
ParallelAgreeableOrangutan
20:12
Seems like you'd need to write about A because it went through a formal process, but it shouldn't hurt you if you explain it straightforwardly and explain you were cleared (just don't be weirdly salty about it like you're holding a grudge)
ParallelAgreeableOrangutan
20:12
Re B, did this involve school in any way? Is there an app that has a C&F question that you think this applies to?
ParallelAgreeableOrangutan
20:13
Maybe you're not deep enough into the process to know this—each school has its own unique set of C&F questions, so you should disclose exactly what they ask about, no more, no less
NosyBeagle
20:14
OH
NosyBeagle
20:14
Ok why did I think it was just gonna be one type of q for all. My bad folks. Ignore my info dump
ParallelAgreeableOrangutan
20:16
No worries! Frankly I think it's wild that applications have weird hidden quirks that you don't know about until you're actually logged into LSAC working through the app. There's some info you can find about the oddball/unique questions you'll find on specific apps, so you might want to look for that for schools you're going to apply to
ParallelAgreeableOrangutan
20:17
Like on various consultants' blogs, reddit, etc
NosyBeagle
20:17
🫡 thank you good sir or ma’am or bam
ParallelAgreeableOrangutan
20:17
Ooh can I be a bam
NosyBeagle
20:39
You may
20:45
ima write my personal statement about being fired and how that made me want to do law but it would be funny if I also had to write an addendum about it
20:45
turns out defense companies don’t like it when you question the war machine 🙏
20:46
“What are your opinions on Edward Snowden” - my boss
ParallelAgreeableOrangutan
21:02
I wrote optional essays about a situation that affected my undergrad performance. For any school that required an "education gap addendum" I was basically like "pls see my optional essay"
ParallelAgreeableOrangutan
21:02
¯⁠\⁠_⁠(⁠ツ⁠)⁠_⁠/⁠¯
NosyBeagle
21:12
did they accept that?
NosyBeagle
21:12
that reminds me of filling out job apps and they want you to type out your resume in a text box. like huh??? open the pdf, idiots
ParallelAgreeableOrangutan
21:18
I mean I was nicer about it—I'd put a couple of sentences explaining it super lo-res, and then I said something like "I speak to this situation in detail in my optional essay."
ParallelAgreeableOrangutan
21:20
They don't send your application back to you and tell you to redo an addendum if they don't like it, so the only way to know whether they "accepted" it, as it were, is admissions results
Bettercaulsaul
22:28
Helpful video I found https://youtu.be/2ZVrX6DTSKU?si=KsZeWbF4_fJuqKl5
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