Capital gain
From Wikipedia, the free encyclopedia.
In finance , a capital gain is profit that is realized from the sale of an asset that was previously purchased at a lower price. The most common capital gains are realized from the sale of stocks, bonds, and property. (If the sale of the asset had yielded a loss rather than a profit, this loss would be called a capital loss .)
Capital gains may be exempt from income tax , in which case it may be important to distinguish capital gains (or losses) realised on the sale of fixed assets (long-life assets that form part of the structure of a business, such as real property ),known as Long term capital gains from trading profits or losses realised on the sale of trading stock (short-life assets that are quickly sold on),known as Short term capital gains .
In many jurisdictions, including the United States and the United Kingdom , capital gains are subject to a capital gains tax .
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