Summary of Capital Gains

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Summary of Capital Gains

Capital gains are the growth in value of an investment. If you sell an investment for a "profit," you have received capital gains. However, it’s not always easy to see what the gain is unless you analyze it.

A capital gain is the difference between your basis in an investment and the amount you receive when you sell it. The basis is complicated because it includes your original purchase price plus any additional money you put into the investment.

Since you will be asked to pay taxes on capital gains, you should know the basics to avoid paying too much tax. You can lower your tax burden by knowing your true basis and holding period for an investment as well as the rules for avoiding capital gains taxes.

What you have learned

  1. Capital Gains: Long-Term and Short-Term
  2. Realized and Unrealized Capital Gains
  3. Capital Gains Tax
  4. What Is Subject to Capital Gains Tax?
  5. Important Capital Gains Terms

Find out what you have learned