capital gain

noun

: the increase in value of an asset (such as stock or real estate) between the time it is bought and the time it is sold

Examples of capital gain in a Sentence

Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Paying the tax typically requires selling assets or borrowing against them, triggering capital gains taxes, leverage risks, and further distortions. Veronique De Rugy, Oc Register, 5 Feb. 2026 Federal rules make any net home value gain above $250,000 for a single filer and $500,000 for joint filers subject to a capital gains tax. Aldo Svaldi, Denver Post, 5 Feb. 2026 That means long-term capital gains may be taxed at higher rates than stocks or bonds. Angelica Leicht, CBS News, 2 Feb. 2026 In fact, the unexpectedly narrow deficit in Newsom’s 2026 budget was due to what California’s Legislative Analyst Office identified as a $42 billion tailwind created by a robust stock market, which led more Californians to earn more capital gains and pay more taxes on those earnings. Lanhee J. Chen, Mercury News, 31 Jan. 2026 See All Example Sentences for capital gain

Word History

First Known Use

1921, in the meaning defined above

Time Traveler
The first known use of capital gain was in 1921

Cite this Entry

“Capital gain.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/capital%20gain. Accessed 14 Feb. 2026.

Legal Definition

capital gain

see gain

Last Updated: - Updated example sentences
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