Gain or Capital Gain

The amount of a gain is the difference between the tax basis and the amount received for the property upon sale. This value of the gain determines the amount of capital gains tax due on the income from the sale of the property.  The tax basis is the amount originally paid for property after certain adjustments.

For example, if a couple bought a house in 1970 for $50,000 and sold that house for $400,000 some years later. There would be a potential tax on a the  $350,000 gain.

See also cost basis and stepped‐up basis.

Estate Planning Glossary

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