Capital Gains
Profit made from selling an asset, such as stocks, real estate, or other investments, for a price higher than its original purchase price.
Types of capital gains
Short-term capital gains: Gains from assets held for one year or less. These are typically taxed at a higher rate, usually the individual’s ordinary income tax rate. Gains from assets held for one year or less. These are typically taxed at a higher rate, usually the individual’s ordinary income tax rate.
Long-term capital gains: Gains from assets held for more than one year. These are usually taxed at a lower rate than short-term gains, depending on the individual’s tax bracket and the country’s tax laws.