What Are Capital Gains? A Guide to When These Taxes Apply

“What are capital gains?” you might wonder. When you hear the phrase, you probably assume it applies only to wealthy investors—you know, those folks who can sit back and let their stock market payouts fund their mansions and yacht rides. But the truth is, the minute you invest in almost anything beyond your 401(k) or IRA—even, for example, your employee stock purchase plan—you have the potential to realize capital gains.

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