Taxable income includes capital gains. However, individuals are taxed at a lower rate on long term capital gains and qualifying dividends (see below). A capital gain is the excess of the sales price over the tax basis (usually, the cost) of capital assets, generally those assets not held for sale to customers in the ordinary course of business. Capital losses (where basis is more than sales price) are deductible, but deduction for long term capital losses is limited to the total capital gains for the year, plus for individuals up to $3,000 of ordinary income ($1,500 if married filing separately). An individual may exclude $250,000 ($500,000 for a married couple filing jointly) of capital gains on the sale of the individual's primary residence, subject to certain conditions and limitations. Gains on depreciable property used in a business are treated as ordinary income to the extent of depreciation previously claimed.