Glossary
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Capital gains

Capital gains

What is Capital gains?

When property investors get an appraisal, the value of the home might increase. But, until the home is actually sold, the value has not been locked in. Capital gains describes locking in the appreciation of capital assets (eg. investment property) and thus is a realized increase in value.

One of the benefits of Capital Gains is that it's treated differently than W2 or 1099 income. Capital gains is taxed at a different rate. Personal income taxes can go up to 37% whereas capital gains taxes go up to a maximum of 20%.

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