Financial Poise

Capital Gains

  • October 5, 2021
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Capital Gains are the profit that results from a disposition or sale of a capital asset. Capital gains are realized when the sale of certain assets, such as stock, or real estate, exceeds the original purchase price. The gain is the difference between a higher selling price and a lower purchase price. Long-term capital gains are usually taxed at a lower rate than regular income. This is done to encourage investment and entrepreneurship.