This refers to the profits made from the sale of a capital asset such as investments, personal property, and real estate. It is calculated as follows: get the total selling price of the relinquished property, subtract the exchange expenses, and then subtract the relinquished property’s adjusted basis. Capital gains may be subject to depreciation recapture and other regulations set forth by the IRS.
Capital Gain
This refers to the profits made from the sale of a capital asset such as investments, personal property, and real estate. It is calculated as follows: get the total selling price of the relinquished property, subtract the exchange expenses, and then subtract the relinquished property’s adjusted basis. Capital gains may be subject to depreciation recapture and other regulations set forth by the IRS.
