Gain and loss
At a basic level, a gain compares disposal proceeds with an applicable basis or cost amount. A loss can arise when the applicable proceeds are lower. Tax law determines which amounts, adjustments and transactions count.
Realized vs unrealized
An increase in an asset's market value while it is still held is often described as an unrealized gain. A taxable event may arise when a gain is realized, but specific rules and exceptions vary.
Holding period can matter
Some jurisdictions treat gains differently depending on how long an asset was held. Rates, exemptions, offsets and reporting requirements can also vary by asset and taxpayer.
Keep records
Accurate records of purchase amounts, eligible costs, adjustments and disposal proceeds can be important when determining gains or losses under applicable rules.
Explore investment projections with the Investment Calculator and tax education in the Taxes Center.
This page explains general concepts only. Capital-gains rules are jurisdiction- and situation-specific; consult current official guidance or a qualified professional.