Capital gain
A capital gain is the increase in a capital asset's value and is realized when the asset 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
There are two categories of capital gains: short-term and long-term. If the asset was held for one year or less, the capital gain is short-term. If the asset was held for more than one year, then the capital gain is long-term. To determine how long you held the asset, you generally count from the day after the day you acquired the asset up to and including the day you disposed of the asset.
Capital Gains: Definition, Rules, Taxes, and Asset Types. Investopedia. Retrieved from: https://www.investopedia.com/terms/c/capitalgain.asp
Capital gains. Cornell Law School. Retrieved from: https://www.law.cornell.edu/wex/capital_gains