what is a capital gain 
capital gain refers to the increase in the value of a capital asset when it is sold 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 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 in certain circumstances the internal revenue service irs taxes individuals on capital gains 