Capital Gain
A capital gain is profit realized when a capital asset is sold or disposed of for more than its tax basis.
Taxation terms for capital gains, losses, carryovers, holding-period gain treatment, and net capital gain calculations.
Capital Gains, Losses, and Carryovers is the taxation area for dividends, capital gains, capital losses, investment income, investment interest, wash sales, tax-loss harvesting, and basis terms. These terms matter when they change after-tax portfolio return, gain recognition, loss use, holding-period treatment, dividend classification, or investment-tax reporting.
Use this page as orientation before relying on a narrower term. Check the broker statement, Form 1099-B, Schedule D support, basis record, holding period, dividend statement, wash-sale record, and tax year before treating a tax definition as decision-ready. Use Investment Tax Items for the broader branch, then move to the narrower page when a form, basis record, tax rule, transaction, income type, or filing position controls the result. Related context often appears in Investing, Financial Instruments, and Personal Finance, but this page keeps the focus on finance-facing tax effects rather than personal filing advice.
| Topic or term | Best use |
|---|---|
| Capital Gain | A capital gain is profit realized when a capital asset is sold or disposed of for more than its tax basis. |
| Capital Gain Tax | Capital gain tax is the tax applied to realized gains from selling capital assets, often with rate differences by holding period. |
| Capital Loss | A capital loss occurs when a capital asset is sold or disposed of for less than its adjusted tax basis. |
| Capital Loss Carryover | A capital loss carryover moves unused capital losses to future tax years when current-year limits prevent full use. |
| Long-Term Capital Gains | Long-term capital gains refer to the profits made from the sale of an asset held for longer than a year, usually taxed at a lower rate compared to short-term gains. |
| Loss Carryforward | A loss carryforward applies unused losses to future taxable income or gains when tax rules allow deferral. |
| Net Capital Gain | Net capital gain is the excess of capital gains over capital losses after applying required netting rules. |
| Short-Term Capital Gains and Losses | Short-term capital gains and losses arise from capital assets held for a short holding period, often one year or less. |
| Tax Loss Carryback or Carryover | Tax Loss Carryback or Carryover allows taxpayers to use losses from one year to reduce tax liability in another year, maximizing tax efficiency. |
Selling a losing position may create a capital loss, but a wash-sale purchase can defer the loss and adjust basis instead of producing immediate tax benefit.
Use official sources for current rules, forms, thresholds, and filing details. This page avoids hard-coding tax figures that can change by year or jurisdiction.
Capital Gains, Losses, and Carryovers is for financial education and vocabulary building. It is not personalized tax, legal, accounting, investment, or filing advice. Tax rules change and depend on specific facts, so readers should confirm current authority and consult a qualified tax professional for decisions or filings.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
A capital gain is profit realized when a capital asset is sold or disposed of for more than its tax basis.
Capital gain tax is the tax applied to realized gains from selling capital assets, often with rate differences by holding period.
A capital loss occurs when a capital asset is sold or disposed of for less than its adjusted tax basis.
A capital loss carryover moves unused capital losses to future tax years when current-year limits prevent full use.
Long-term capital gains refer to the profits made from the sale of an asset held for longer than a year, usually taxed at a lower rate compared to short-term gains.
A loss carryforward applies unused losses to future taxable income or gains when tax rules allow deferral.
Net capital gain is the excess of capital gains over capital losses after applying required netting rules.
Short-term capital gains and losses arise from capital assets held for a short holding period, often one year or less.
Tax Loss Carryback or Carryover allows taxpayers to use losses from one year to reduce tax liability in another year, maximizing tax efficiency.