Taxable
Channel: English Unpacked
Date: 2023-12-02

The term "taxable" refers to something that is subject to taxation. In other words, it is a term used to describe income, assets, or transactions that are eligible to be taxed by the government. When something is considered taxable, it means that it is legally required to be reported to the tax authorities and may be subject to tax calculations and payments.
Here are a few examples of things that are commonly considered taxable:
1. Income: Most countries have a system of income tax, where individuals and businesses are required to pay a percentage of their earnings to the government. Any money earned through employment, self-employment, investments, or other sources is generally considered taxable income. For instance, if you work as an employee and receive a salary, that salary is taxable income.
2. Capital gains: When you sell an asset such as stocks, real estate, or valuable collectibles, any profit you make from the sale is called a capital gain. In many countries, capital gains are subject to taxation. For example, if you buy a piece of land for $100,000 and sell it later for $150,000, the $50,000 profit would be considered a taxable capital gain.
3. Sales tax: Sales tax is a type of tax imposed on the purchase of goods and services. It is added to the price of the item and collected by the seller on behalf of the government. The tax rate and rules vary depending on the jurisdiction. For instance, if you buy a $20 shirt and the sales tax rate is 10%, you would have to pay an additional $2 as taxable sales tax.
4. Property tax: Property tax is a tax levied on the value of real estate properties, such as houses, land, and buildings. Property owners are required to pay a percentage of the assessed value of their property to the government on a regular basis. This tax is typically used to fund local government services. For example, if you own a house with an assessed value of $300,000 and the property tax rate is 1%, you would owe $3,000 in taxable property tax.
It is important to note that tax laws and regulations can vary greatly between countries and jurisdictions. Therefore, it is always advisable to consult with a tax professional or refer to the specific tax laws in your area to determine what is considered taxable and how to comply with the tax requirements.