Legal Definitions - long-term capital gain

A long-term capital gain is the profit made when a capital asset is sold or exchanged after being held for more than a year. A capital asset can be anything from stocks to real estate.

For example, if you bought a stock for $100 and sold it for $150 after holding it for more than a year, the $50 profit would be considered a long-term capital gain.

It is important to note that long-term capital gains are taxed at a lower rate than short-term capital gains, which are profits made from selling or exchanging a capital asset held for less than a year.

Overall, long-term capital gains are a way for individuals to make a profit from their investments and are an important aspect of the tax code.