Ordinary Gain | Propertylogy

Ordinary Gain

By on November 10, 2019

An ordinary gain is a gain or profit in which ordinary income tax rates has to be paid.

This means that it would be taxed at possibly a higher income tax bracket than capital gains.

It is also why corporations would try to get their accountants to categorize them as capital gains to avoid high tax rates, especially when it is of a considerable amount.

However, this can be a huge challenge as ordinary gains usually account for profits that were generate from business operations.

And thus, often considered as business profit as well.

When in doubt, the expertise of a qualified accountant should be consulted.

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