Capital gains - When you buy a real estate in Maryland and sell it for a higher price, the difference between the selling price and the purchase price is known as capital gain. In other words, profit from selling a property for a higher price is the capital gain on the property. Capital gains may be short-term or long-term. Short-term gain: If you sell your property within 3 years after purchasing it, the gain is called short-term capital gain. Long-term gain: When a gain occurs from selling a property after 3 years of its purchase, it is a long-term capital gain.
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