Definition:
Adjusted Net Capital Gains (ANCG) is a financial metric used in the United States to calculate the amount of capital gains subject to taxation. It is calculated by subtracting net short-term capital losses from net long-term capital gains.
Key points about ANCG:
- Long-term vs. short-term: Capital gains are classified as long-term if the asset was held for more than one year, and short-term if it was held for one year or less.
- Net gains/losses: Net long-term capital gains and net short-term capital losses are calculated by subtracting the total losses from the total gains for each category.
- Carryover: If net short-term capital losses exceed net long-term capital gains, the excess can be carried over to future tax years.
- Tax rates: The tax rate for ANCG depends on your income tax bracket.
Why is ANCG important?
- Tax calculation: ANCG is used to calculate your capital gains tax liability.
- Tax planning: Understanding ANCG can help you make informed decisions about buying and selling investments.
- Portfolio management: ANCG can be used to assess the performance of your investment portfolio.
In essence, ANCG is a crucial financial metric that affects your federal income tax liability and can help you make informed decisions about your investments.
