When it comes to investing, one of the most sought-after financial gains is capital gain. A capital gain is the profit made from the sale of an asset, such as stocks, bonds, or property. In the world of agreements, capital gain is a term that`s commonly used to refer to the gain made on the sale of a capital asset as per an agreement.

A capital asset can include investments in stocks, bonds, mutual funds, real estate, and other assets that are held for a long-term period. When such an asset is sold by the owner, it can result in a capital gain or loss. In simpler terms, if the sale price of the asset is higher than its purchase price, the owner makes a profit, which is called a capital gain. On the other hand, if the sale price is lower than the purchase price, the owner incurs a loss, which is called a capital loss.

Now, when it comes to capital gain on agreement, it refers to the profit made by the parties involved in an agreement that involves a capital asset. For instance, if two parties agree to buy and sell stocks, and the value of those stocks increases over time, then the seller can make a capital gain on the agreement. Similarly, if one party agrees to sell a property to another party, and the value of the property increases over time, then the seller can make a capital gain on the agreement.

Capital gain on agreement can be taxable, depending on the country`s tax laws. For instance, in the United States, the capital gain tax rate varies based on the amount of time the asset was held, the tax bracket of the seller, and the type of asset sold. In some cases, capital gains may be exempt from tax, such as when the asset is sold by an individual who`s held it for more than a year.

In conclusion, capital gain on agreement refers to the profit made by the parties involved in an agreement that involves a capital asset. It can be a lucrative source of income and can be subject to taxation. As always, it`s important to consult with a tax professional to understand the specific tax laws that apply to your situation.