| Capital Gain |
An increase in the value of a capital asset (investment or real estate) that gives it a higher worth than the purchase price. The gain is not realized until the asset is sold. A capital gain may be short-term (one year or less) or long-term (more than one year), and must be claimed on income taxes.
|
Long-term capital gains are usually taxed at a lower rate than regular income. This is done to encourage entrepreneurship and investment in the economy.
|
A Long-Term Mindset Meets Dreaded Capital-Gains Tax - Investors would be wise to consider the impact of capital-gains tax on their returns. |
|
Related Terms
 |
|
