Appreciation

Appreciation means:
the excess of the fair market value of property over the taxpayer's cost or tax basis in such property.

Example of Appreciation:

Learn more about tax examples, explanations and calculations here.

Abel sold for $100,000 land that he purchased 10 years ago for $60,000. During that time the amount of appreciation was $40,000.

Appreciation gains from investment property may be subject to a maximum 28% tax rate for individuals, estates, and trusts.

See Tax Rate and Tax Rate.