Capital Gain or Loss

Difference between the acquisition price and the sales price. If a property is sold for more than paid, a capital gain results. If a property is sold for less than originally paid, a capital loss.

Credit Tenant

A credit tenant is tenant that has received an investment grade rating by one of the three major credit agencies; Fitch, Moody’s, or Standard & Poor’s. An investment grade rating is seen as a good sign that the tenant will be able to pay rent in the event of an economic downturn.

Capital Gains

Capital gains are the results of a rise in the value of a capital assets (investment or real estate) that gives it a higher worth than the purchase price. Capital gains are not realized until assets are sold. Capital gains may be short-term (one year or less) or long-term (more than one year) and must be claimed on income taxes.

Capital Gains Tax

Tax that is applied by the IRS to profits realized from an investment of capital.  Each state also their own rate of taxation in addition to federal taxes.

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