| The difference between the amount realized and adjusted basis on the sale or exchange
of capital assets. Profit on the sale of capital assets such as stocks, mutual fund shares
and real estate. Depending on your tax bracket and on how long you held a capital asset
you may pay about one-third to one-half less tax on a capital gain than you would have
paid on the same amount of ordinary income. See also:
Capital Asset
Capital Loss
|
