Archie Kirwan
2 Answers
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Capital gain is the amount of money you make on a investment be it real estate, car, art, any object that you get more at sale than you originaly paid..
Example You buy a house for $500,000 you sell it for $600,000 after spending $ 20,000 renovating plus $ 5,000 in auction charges plus advertising your selling the house.
You sold for $100,000 more than you paid BUT you expended a further $25,000 in renovations and costs of sale. Capital GAIN is $ 75,000 ie: $100k less $25k
| 12 years ago. Rating: 1 | |
Barbara01
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