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.
Gourinchas and Rey showed that exchange-rate movements, capital gains, and asset-price changes can alter countries’ external positions even without large changes in trade flows. James Broughel, Forbes.com, 10 May 2026 As long as the trust is not administered in Oregon and none of the trustees live there, the trust’s capital gains would not be subject to Oregon income taxes. Hayley Cuccinello, CNBC, 8 May 2026 The country has no inheritance or capital gains tax and a flat 15% income tax rate (with effective rates often lower due to various allowances). Eleanor Pringle, Fortune, 6 May 2026 Under a progressive tax structure, the state budget is dependent on income taxes paid by the ultra-rich on earnings largely from capital gains. Taryn Luna, Los Angeles Times, 3 May 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 13 May. 2026.

Legal Definition

capital gain

see also:
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!

More from Merriam-Webster