FOX Translator
No data currently available.
No data currently available.
These gains don't cause pain. A capital gain is the amount of money you pocket by selling one of your investments for more than you paid for it. Technically, capital gains only count for what's called a capital asset, but that's really just anything you own for investment purposes. Stocks and bonds obviously qualify, but your house and household furnishings can also count.
For tax purposes, capital gains are classified as either long-term (held for more than one year) or short-term (held for less than one year) and there are different tax implications for how long you hold onto a capital asset. For most long-term capital gains, you're taxed no more than 15% of the value of the asset. Short-term gains get taxed as regular income, so you pay the rate for the tax bracket you're in.
Capital gains can also be realized or unrealized. When you physically sell an asset like a stock, you've realized the capital gain. When you're holding the stock, and it has a value over its purchase price, but you're not selling it, you've got an unrealized gain, and you won't realize it until you sell.
In a perfect world, we'd all have capital gains. But no one¿s that smart or lucky. When the value of an asset at sale is below what you've paid for it, it's called a capital loss. The good news is that the government lets you count that loss against any gains you've had, lowering the taxes you pay. In fact, many people who sell a stock that has risen far over their purchase price tend to sell some stinkers, too, at the same time for the tax benefit. This is known as a capital-loss offset.
Home / Markets / Industries / Energy
Wednesday, July 09, 2008
Oil Rebounds on Iran Missile Test, Inventory Data
Associated Press
![Oil Rig in Ocean w/ Clouds [276]](/images/stories/oil_rig_clouds.jpg)
Oil prices rose Wednesday after a government report showed U.S. crude stockpiles fell more than expected and Iran test-fired nine missiles, including a type capable of reaching Israel.
Light, sweet crude for August delivery is up 71 cents at $136.75 a barrel in morning trading on the New York Mercantile Exchange.
The gains follow two days of steep declines that left prices 6.4 percent below last week's record high.
Figures from the Energy Information Administration showed U.S. oil supplies fell by 5.9 million barrels last week, a decline of 2 percent. That is far above the 1.9 million barrels forecast by analysts surveyed by the energy research firm Platts.
However, gasoline stockpiles rose more than expected. Inventories of distillate fuel, which include diesel and heating oil, also rose, but less than analysts anticipated.
Retail gasoline prices in the U.S. hovered at a record high just shy of $4.11 a gallon for the third straight day, according to auto club AAA, the Oil Price Information Service and Wright Express. Diesel prices at the pump rose by more than half a penny to a new high of $4.813 a gallon.
Iran's Revolutionary Guards fired the missiles during war games that officials said were meant to show the key oil producer can retaliate against a U.S. or Israeli attack, state television reported.
The barrage was said to include a new version of the Shahab-3 missile, which officials have said has a range of 1,250 miles. That makes it capable of striking Israel, Turkey, the Arabian peninsula, Afghanistan and Pakistan.
Gen. Hossein Salami, a top commander, was quoted as saying the exercise "is to demonstrate our resolve and might against enemies who in recent weeks have threatened Iran with harsh language."
A day earlier, Iranian President Mahmoud Ahmadinejad dismissed fears that Israel and the United States could be preparing to attack his country, calling the possibility a "funny joke."
"Iran is certainly sending mixed signals," said Victor Shum at Purvin & Gertz in Singapore. "There was an apparent easing of tensions, but then the missile tests had an impact on prices today."
Iran is the world's fourth-largest oil producer and OPEC's second-largest exporter. Oil traders fear any military conflict could prompt Iran to block the Strait of Hormuz, a passageway that handles about 40 percent of the world's tanker traffic.
The declines earlier in the week dragged crude prices back to levels not seen since June 26. However, a number of analysts have cautioned that the sell-off might not represent a long-term shift in the bull ran that just last week drove prices past $145 a barrel.
In Washington, House Speaker Nancy Pelosi called on President Bush to open up the country's Strategic Petroleum Reserve in an effort to bring down prices she said "are helping push the economy toward recession." Bush repeatedly has rejected calls to use oil from the emergency government stockpile.
In other Nymex trade, heating oil futures rose about 4 cents to $3.8609 a gallon while gasoline prices added nearly 2 cents to $3.3824 a gallon. Natural gas futures slipped 11.6 cents to $12.252 per 1,000 cubic feet.
August Brent crude rose $1.02 to $137.45 a barrel on the ICE Futures exchange in London.
Market Snapshot
| Symbol | Last Price | Netchange | Volume |
|---|---|---|---|
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
