Capital Gains Tax Exemption

Capital Gains Tax exemption refers to specific rules that allow individuals to sell certain assets, like a primary residence or small business, without paying taxes on the profit (gain) made from the sale. Essentially, it reduces or eliminates the tax burden on gains from qualifying sales, encouraging investment and asset mobility. These exemptions vary by jurisdiction and type of asset, often with conditions such as holding periods or limits on the exemption amount. The goal is to promote economic activity while offering relief for personal or small-scale investments.