Capital Gain

The capital gain is defined as the profit obtained through the difference between the purchase price of an asset and its sale price, that is, the profit is that additional amount that the asset obtained over time. and that at the time of selling the price is higher than at the time of purchase.

It is important for the individual to be clear that the difference between the amount for which the capital asset is sold and its base, which in most cases is what is paid to obtain it, then becomes a profit or loss of when, for example, a person sells above the initial price, that is a capital gain, while if he sells the asset for an amount less than his base.

The capital gain is the money earned by a series of actions such as: participations, storages, bonds, real estate or goodwill, for example, the value of a company is due to its reputation. If an individual buys some asset and then sells it for more money than he bought it for, there he has a capital gain. The same happens if it is sold for less than the price it is worth, that is where there is a loss of capital. Another clear example of these would be the capital gains taxes paid in the United States, these being paid at a different rate from other income, including salary and will depend on the time that the individual has owned the asset and whether significant losses were recorded during the year.