Real Estate Investing Glossary
Capital gains
Capital gains are the profit from selling an asset for more than its adjusted cost.
Capital gains are the profit from selling an asset for more than its adjusted cost. In real estate, the gain is generally the sale price less the cost basis and selling costs.
Why it matters to a Las Vegas investor
A sale of a Las Vegas rental can create a taxable gain, which is one reason investors look at holding periods and options such as exchanges. Tax treatment varies, so consult a tax professional.
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Related terms
Questions about Capital gains
Are capital gains the same as rental income?
No. Rental income comes from tenants. A capital gain arises when you sell.
Does a 1031 exchange avoid capital gains?
It defers them rather than removing them.