capital gain explanation. #shorts #capitalgains #stock #investing #Taxes

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capital gain explanation. #shorts #capitalgains #stock #investing #Taxes

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A capital gain is a profit made from the sale of an asset for more than its purchase price. Capital gains are taxed at different rates depending on how long the asset was held before selling. Short-term capital gains are taxed at the same rate as ordinary income, while long-term capital gains are taxed at lower rates. Capital gains can be generated from the sale of stocks, bonds, real estate, and other assets.

Here is an example of a capital gain:

You buy a stock for $100.
The stock price increases to $150, and you sell it.
You have a capital gain of $50.

The tax treatment of capital gains can be complex, so it is important to consult with a tax advisor to understand your specific situation.

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