What is the term for the profit earned from the sale of an asset?

The term for the profit earned from the sale of an asset is referred to as a capital gain. This concept is fundamental in real estate and investment contexts, as it captures the increase in value of an asset over time. When a property is sold for a higher price than it was originally purchased, the difference is realized as a capital gain. This gain can be affected by various factors, including market conditions, property improvements, and the overall economic environment.

Understanding capital gains is crucial for investors, as they impact financial planning and tax liabilities. In many jurisdictions, capital gains may be subject to taxation, which is an important consideration for anyone involved in buying or selling real estate.

Other terms listed, such as net return and property income, relate to different financial metrics. Net return typically refers to the total profit after all expenses and costs have been deducted, rather than focusing solely on the difference between buying and selling price. Property income refers to ongoing earnings generated from an asset, such as rent collected from tenants, rather than the profit realized from its sale. Capital absorption is not a standard term in real estate and does not relate to the concept of profit from asset sales. Thus, capital gain serves as the most appropriate and accurate term for the questions posed.