Final answer:
Income from selling an asset for more than its purchase price is classified as a capital gain. It is not to be confused with dividend income, business income, or a windfall.
Step-by-step explanation:
Income earned from the sale of an asset for more than you paid for it is classified as a capital gain. This could happen, for example, when an investor buys a share of stock at a certain price and later sells it for a higher price. The difference in value, which represents the increase in the asset's value from the time it was purchased to the time it was sold, constitutes the capital gain. In contrast, dividend income is the money paid to shareholders out of the profits of a corporation, and business income is what a person or company earns from conducting business activities. A windfall refers to an unexpected gain, usually significant, that is not particularly earned, such as an inheritance or lottery win.