Capital Gains
A capital gain is the profit you make when you sell an investment for more than you paid for it. Buy a stock at $50, sell at $80 — that $30 difference is your gain, and the government wants a cut. Hold the investment longer than a year and it's a 'long-term' gain, taxed at lower rates than your regular income.
Example: Sell a stock for a $10,000 profit after holding it two years and you'll likely owe 15% ($1,500) — not your full income-tax rate.
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Educational content only — not financial advice.