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What are capital gains?

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Quick answer

A capital gain is the profit you make when you sell an asset — like stocks, property, or crypto — for more than you paid. Many countries tax these gains, often at different rates depending on how long you held the asset.

Key things to understand

  1. It's the profit from selling an asset above its cost.
  2. Applies to stocks, property, crypto, and more.
  3. Often taxed, sometimes at special rates.
  4. Holding longer can mean lower tax in some countries.

People also ask

What are capital gains?
The profit earned when you sell an asset for more than you paid for it.
What's the difference between short- and long-term capital gains?
Short-term gains are on assets held briefly; long-term gains (held longer) are often taxed at lower rates.
Do you pay tax on capital gains?
In many countries yes, though rates and exemptions vary, and losses can sometimes offset gains.