[{"data":1,"prerenderedAt":185},["ShallowReactive",2],{"term:capital-gain":3},{"term":4,"related":176},{"id":5,"title":6,"body":7,"category":156,"description":157,"extension":158,"faq":159,"meta":163,"navigation":164,"path":165,"related":166,"seo":169,"stem":170,"takeaways":171,"__hash__":175},"terms\u002Fterms\u002Fcapital-gain.md","Capital Gain",{"type":8,"value":9,"toc":149},"minimark",[10,15,19,22,26,142,146],[11,12,14],"h2",{"id":13},"understanding-capital-gain","Understanding Capital Gain",[16,17,18],"p",{},"A capital gain is the increase in an asset's value, realized when it is sold. A sale below the purchase price is a capital loss.",[16,20,21],{},"In the U.S., gains on assets held more than one year are taxed at long-term rates, which are lower than the rates on short-term gains.",[11,23,25],{"id":24},"formula","Formula",[27,28,31],"span",{"className":29},[30],"katex-display",[27,32,35,72],{"className":33},[34],"katex",[27,36,39],{"className":37},[38],"katex-mathml",[40,41,44],"math",{"xmlns":42,"display":43},"http:\u002F\u002Fwww.w3.org\u002F1998\u002FMath\u002FMathML","block",[45,46,47,67],"semantics",{},[48,49,50,54,58,61,64],"mrow",{},[51,52,53],"mtext",{},"Capital gain",[55,56,57],"mo",{},"=",[51,59,60],{},"Sale price",[55,62,63],{},"−",[51,65,66],{},"Cost basis",[68,69,71],"annotation",{"encoding":70},"application\u002Fx-tex","\\text{Capital gain} = \\text{Sale price} - \\text{Cost basis}",[27,73,77,106,129],{"className":74,"ariaHidden":76},[75],"katex-html","true",[27,78,81,86,94,99,103],{"className":79},[80],"base",[27,82],{"className":83,"style":85},[84],"strut","height:0.8889em;vertical-align:-0.1944em;",[27,87,91],{"className":88},[89,90],"mord","text",[27,92,53],{"className":93},[89],[27,95],{"className":96,"style":98},[97],"mspace","margin-right:0.2778em;",[27,100,57],{"className":101},[102],"mrel",[27,104],{"className":105,"style":98},[97],[27,107,109,112,118,122,126],{"className":108},[80],[27,110],{"className":111,"style":85},[84],[27,113,115],{"className":114},[89,90],[27,116,60],{"className":117},[89],[27,119],{"className":120,"style":121},[97],"margin-right:0.2222em;",[27,123,63],{"className":124},[125],"mbin",[27,127],{"className":128,"style":121},[97],[27,130,132,136],{"className":131},[80],[27,133],{"className":134,"style":135},[84],"height:0.6944em;",[27,137,139],{"className":138},[89,90],[27,140,66],{"className":141},[89],[11,143,145],{"id":144},"example","Example",[16,147,148],{},"Buy a share at $50, sell it at $80: the capital gain is $30.",{"title":150,"searchDepth":151,"depth":151,"links":152},"",2,[153,154,155],{"id":13,"depth":151,"text":14},{"id":24,"depth":151,"text":25},{"id":144,"depth":151,"text":145},"taxes","The profit from selling an asset for more than its purchase price.","md",[160],{"q":161,"a":162},"Can capital losses reduce my taxes?","In the U.S., losses offset gains, and up to $3,000 of net losses a year can offset ordinary income. The rest carries forward.",{},true,"\u002Fterms\u002Fcapital-gain",[167,168],"cost-basis","dividend",{"title":6,"description":157},"terms\u002Fcapital-gain",[172,173,174],"A capital gain is profit from selling an asset for more than its cost basis.","Gains are taxed only when realized by a sale.","U.S. long-term gains (held over one year) get lower tax rates.","Z1ogfqupfkR6snPd_r9qMvqcLdiV8zk_C_e-fZpxy-k",[177,181],{"title":178,"description":179,"path":180},"Cost Basis","The original value of an asset for tax purposes, usually the purchase price plus fees.","\u002Fterms\u002Fcost-basis",{"title":182,"description":183,"path":184},"Dividend","A share of company profits paid to shareholders, usually in cash.","\u002Fterms\u002Fdividend",1793226379144]