• Capital gain is the increase in the value of fixed capital that is realized when an asset is sold.
  • Capital gains apply to any type of asset, including investments and those acquired for personal use.
  • Profits can be short term (one year or less) or long term (more than one year) and must be claimed for income tax.
  • Unrealized gains and losses reflect increases or decreases in the value of investments, but are not considered taxable capital gains.
  • A capital loss occurs when there is a decrease in the value of capital assets compared to the purchase price of the asset.