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Home Definitions

What is Capital Gain? Definition or Meaning

Posted by Bizversity

Selling something valuable that you own? If you bought property for $400,000 and are selling it as a price of $450,000, you have made $50,000 in capital gains. Your government may tax you or your business on this income.

For example…

You may invest $10,000 dollars and see the value rise to $12,000. Thus, your capital gains are $2,000. But how much of this money is yours? Depending on what your investment is, your local government may be entitled to claim some of your profits as a tax payment from you.

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