English translation: realised capital gain but not cashed in yet
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English to English translations [PRO] Bus/Financial - Finance (general)
English term or phrase:hidden capital gain
While the relief procedures are the same, there is the additional advantage that hidden capital gains and profits on which tax has been deferred are not taxed, since no change is made to the accounts and it is still possible to tax capital gains at a later stage.
Explanation: for example, you baught a house or a stock for $x. A year later it was valued at $2x. You made $1x in hidden capital gain. Once you sell your house or your stock, this hidden capital gain ceases to hidden and becomes taxable.
capital gain posted on accounts not considered in gain calculation
Explanation: Mine is very contextual interpretation. Later on, the aforementioned relief procedures will move the gain into more visible accounts. That is why the gain is not taxed now, but taxable at later stage.
Erich Ekoputra Indonesia Local time: 17:23 Works in field Native speaker of: Indonesian PRO pts in category: 20