Capital gains
TaxesDefinition
Profit from selling an investment for more than you paid. Short-term (held < 1 year) taxed as income. Long-term (held > 1 year) taxed at 0%, 15%, or 20%.
Example
Buy stock at $50, sell at $80 = $30 capital gain. If held > 1 year, taxed at the lower long-term rate.