Capital Gains and Basis

A capital gain is the taxable profit that can result when property is sold for more than its tax basis.

Cost basis is the starting tax value used to measure gain or loss when property is later sold or otherwise disposed of.

A capital loss is the loss that can result when a capital asset is sold or exchanged for less than its tax basis.

Adjusted basis is the updated basis figure used after tax-relevant changes alter the original cost basis of an asset.

A short-term capital gain is a capital gain on property held for a shorter holding period and is contrasted with long-term capital gain treatment.

A long-term capital gain is a capital gain on property held long enough to fall into the long-term holding-period category.

The wash sale rule is the tax rule that can limit or defer recognition of a loss when substantially similar securities activity occurs too closely around the sale.

Terms for gain, loss, and basis calculations that determine the taxable result when property is sold or exchanged.