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A capital gain is a profit that you make when you sell an asset, like a property, a share in a company, a bond, a cryptocurrency, etc. – even a piece of art.
In other words, the gain is the difference between a higher selling price and a lower purchase price, and you usually have to pay tax on it.
If you sell an asset for less than you bought it for, you made what it’s called a “capital loss”, and you can use it to reduce other capital gains and pay less tax.
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