Glossary

Capital gains tax (CGT) is a tax levied on the profit made from selling or disposing of an asset that has appreciated in value.

This tax applies to assets like stocks, real estate, and other investments. The rate at which capital gains are taxed may vary depending on the holding period, the type of asset, and the country's tax laws. 💰

For example, if you bought a stock for $1,000 and sold it later for $1,500, your capital gain would be $500. Depending on your country's tax laws, you might owe a percentage of that $500 as capital gains tax.

Fun fact: In the United States, certain assets like collectibles, such as art, coins, and stamps, are subject to a higher capital gains tax rate compared to the standard rates for other assets like stocks and real estate. 🎨