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A capital gain is said to be the profit that is
realized upon the sale or exchange of an asset. Capital gains are
subject to a capital gains tax in most instances. The tax will be
different based on whether the asset was held for a long or a short
period. This is called long or short term capital gains. Very often it
is wise to review the timing of contemplated sales of capital assets to
ensure that the anticipated gain is not wiped out by the higher tax rate
on short term capital gains.
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