Capital Gain Tax
A type of tax levied on capital gains incurred by individuals and
corporations. Capital gains arethe profits that an investor
realizes when he or she sells the capital asset for a price that is
higher than the purchase price.
Capital gains taxes are only triggered when an asset is realized,
not while it is held by an investor. An investor can own shares
that appreciate every year, but the investor does not incur
a capital gains tax on the shares until they are sold.