taxable gain

Definition

The profit from the sale of a security or other asset that is subject to capital gains tax. Gains are taxed at different rates based on the timeframe that the asset was held—or the holding period. Taxable gains for assets held one year or less are taxed at the short-term capital gains rate. Taxable gains for assets held more than one year are taxed at the long-term gains rate. Long-term gains are typically taxed at a lower rate than short-term gains. Also called capital gains.
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step up in basis tax deferred exchange