Capital Gain

Capital gains are the profit from a sale of property or an investment

Why It’s Important 

When you have investments, you are not taxed until you have capital gains.  Capital gains are only triggered when you make a sale at a profit. 

Types of Capital Gains

1. Long Term 2. Short Term

Long Term Capital Gains

Long-term capital gains are after you have held your investments for longer than a year.  These get preferable tax treatment. 

Short Term Capital Gains

Short-term capital gains are taxed at your current tax rate.  Short-term means that you held the investment for less than a year (generally a no-no).