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.
Because of that, revenues are prone to volatility, hinging on capital gains from investments, bonuses to executives and windfalls from new stock offerings, and are notoriously difficult for the state to predict. Seema Mehta, Los Angeles Times, 2 Jan. 2026 Georgia does not tax Social Security benefits, though income from annuities, pensions, dividends, and capital gains is taxable. Patricia Doherty, Travel + Leisure, 30 Dec. 2025 Qualified dividends, which carry holding requirements and meet other IRS rules, are taxed at the lower long-term capital gains rate (0% to 20%, depending on income bracket). Zev Fima, CNBC, 26 Dec. 2025 Because under the tax code, capital gains are not taxed at death. Dave Smith, Fortune, 22 Dec. 2025 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 10 Jan. 2026.

Legal Definition

capital gain

see gain

Last Updated: - Updated example sentences
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