GlossaryBeginner
Capital Gain
The general concept of profit from selling an asset for more than its cost basis.
A capital gain generally refers to a profit realized when an asset is sold or disposed of for more than its cost basis, the amount originally paid to acquire it.
This is an educational, general concept, not personalized tax advice; how capital gains are calculated, categorized, and taxed varies by jurisdiction and individual circumstances.
Examples
- Selling an asset for more than its cost basis generally produces a capital gain.
- How a capital gain is taxed can depend on factors like how long the asset was held, subject to local rules.