Capital Gains or Capital Losses
Almost everything you own and use for either personal or investment purposes is a capital asset. Examples are your house, car, stock or bonds, mutual funds, gems and jewelry, coin or stamp collections, equipment etc. When you sell or exchange a capital asset, the difference between the amount you paid for it (your basis) and your selling price is a capital gain or loss. Your basis includes any other associated costs like shipping costs, fees, commissions, installation costs etc. Capital gains and losses are classified as long-term if you held the property for more than one year, or short-term if you held the property for one year or less before selling it. If your net long-term capital gain is greater than your net short-term capital loss, you have a net long term capital gain.