Capital Gains
Taxation
Definition
The profit realized from the sale of an asset when the selling price exceeds the purchase price, subject to capital gains tax based on holding period.
Key Points
- Profit from asset sale
- Short-term: held <1 year, taxed as ordinary income
- Long-term: held >1 year, preferential tax rates
Quick Info
Category
Taxation
Related Topics
capital appreciation
tax implications
long term gains