Explore commonly used personal finance terms.
Appreciated property refers to assets that have gained value since the time of purchase, often due to favorable market conditions, scarcity, or improvements made to the asset. For example, real estate in high-demand areas or stocks in thriving companies may experience appreciation. Investors can benefit from appreciated property by selling it at a higher price than the purchase price, resulting in capital gains. However, they may also face capital gains tax on the profits if the property or asset is sold.
