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Capital gains are the profits an investor makes when selling a capital asset. A capital asset can be any type of investment such as stocks, bonds or real estate. A capital gain occurs only when the asset is sold with a higher price than the buying price, making the seller a profit.
Put simply, a capital gain occurs when you sell an asset for more than what you originally paid for it.
Almost any type of asset you own is a capital asset. This can include a type of investment (like a stock, bond, or real estate) or even something purchased for personal use (like furniture or a boat). Capital gains are realized when you sell an asset by subtracting the original purchase price from the sale price.
With MetaWealth™, you can earn capital gains when selling your fractions of real estate assets initially purchased on the app to another user, also through our app. Keep in mind that we recommend all our users to hold on to their real estate tokens for at least 5 years for an optimum level of capital gains on reselling.
Extra reading:
https://www.investopedia.com/terms/c/capitalgain.asp
https://www.irs.gov/taxtopics/tc409
If you have any other questions please feel free to reach out to us using the contact us page.
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