Capital gains are often thought of in the context of profiting from the sale of some stock or other security-based financial product. Capital losses on the other hand, are the opposite (the loss incurred from the sale of stock). It is important to remember however, that capital gains and capital losses can also include other sales such as the sale of a vehicle, the sale of a home, the sale of an antique, etc.
Capital gains tax is paid by sellers (both businesses and consumers) who have profited from the sale of some asset (bonds, stocks in other businesses, company equipment that was sold for profit).
Capital loss occurs when an asset is sold for less than was purchased. The amount of this sale is usually exempt (deductible) from taxes up to a certain amount.
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