# Capital gains

Concept · [Fundraising and equity](https://ecosystem.samcarlton.com/fundraising)

Also called: capital gain, capital gains tax, long-term capital gains

The [profit](https://ecosystem.samcarlton.com/profit) from selling an asset, such as [stock](https://ecosystem.samcarlton.com/equity) or property, for more than it cost. It is taxed, often at a different rate than wages.

**For example:** A [founder](https://ecosystem.samcarlton.com/founder) sells [shares](https://ecosystem.samcarlton.com/equity) for more than she paid for them, and the difference is a capital gain.

## Connects to (4)

- [Opportunity zone](https://ecosystem.samcarlton.com/opportunity-zone): A designated low-income area in the US where investors can put money through special funds and postpone tax on certain gains.
- [Exit](https://ecosystem.samcarlton.com/exit): The moment when founders and investors can turn their shares into cash.
- [83(b) election](https://ecosystem.samcarlton.com/83b-election): A notice sent to the US tax agency, the IRS, by a person who receives stock that vests over time.
- [Equity](https://ecosystem.samcarlton.com/equity): Ownership in a company.

> This glossary is plain-language orientation, not legal or financial advice. Before you decide on a company structure, a contract, taxes or a fundraising deal, talk with a lawyer or an accountant.

Map view: https://ecosystem.samcarlton.com/capital-gains