By: Martin M. Shenkman, CPA, MBA, JD
Any asset that has increased in value from the date that you first purchased or acquired it. If you sell the asset in most circumstances you will pay income tax (either capital gains tax or regular income tax) on the appreciation above your basis (what you paid for the asset). Charitable remainder trusts, like kind exchanges, and other techniques can sometimes be used to defer or avoid some portion or all of this gain.
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