What is capital gains tax?
The Bankrate.com financial term of the day is: "capital gains tax."
Capital gains tax is a tax that's owed when you make money from selling stock or a piece of property. Uncle Sam gets a cut of your profits.
When you're holding investments or real estate and let them go at prices higher than you paid, your profits are subject to capital gains tax.
For up-to-date tax information, visit the Taxes section at Bankrate.com.