Can Capital Gains Push Me Into a Higher Tax Bracket?

A capital gain refers to the increase in value of an asset such as stocks, bonds, precious metals, real estate, and other assets. When these assets are sold, the realized gains are taxed at lower rates than ordinary income if the assets are held for at least one year. If the assets are held for less than a year, the gain is treated as a short-term capital gain which is taxed under ordinary income tax rates.