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What is a capital gain?

Wednesday, June 10, 2015
A capital gain occurs when an asset held for investment purposes by an individual (as opposed to a business) is sold in excess of a taxpayer’s basis (cost) for that asset.  Such assets include, but are not limited to: stocks, bonds, real estate, and rental properties (residential and commercial).  For example:  A stock bought for $4.00/shares sells ten years later for $40/share with no load fees or commissions.  The taxpayer would have a capital gain of $36/share.