Capital Gains Tax

Market Terms

We don't know everything about the markets.  We're just devoted to learners.  Taken from those smarter than ourselves, here's how we define Capital Gains Tax.

A tax on the profit made from selling assets (eg stocks, real estate, or other investments).  The “capital gain” being taxed is the total price of the sale subtracted from the original cost of the asset.  When the assets themselves have been sold, the capital gains are said to have been “realized.”  This means a seller is taxed on their gains at the same rate as their regular earnings, as this profit is treated as if it were a salary for tax purposes.