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.
The adviser recommended investment sales that resulted in a $50,000 capital gain tax bill, and their accountant disapproved. Liz Weston, San Diego Union-Tribune, 31 May 2026 Common examples include interest, dividends, capital gains, rents, taxable Social Security benefits, pension and annuity income, unemployment compensation, and many royalties. Kelly Phillips Erb, Forbes.com, 30 May 2026 Married couples filing jointly who have lived in the home as a primary residence for a while can exclude up to $500,000 of capital gains from the sale. Medora Lee, USA Today, 28 May 2026 Even backers of more progressive taxes have warned a one-time wealth tax would do little to address how the ultra-wealthy are able to skirt income tax by borrowing against their assets, recommending instead a more comprehensive structure to tax capital gains. Tristan Bove, Fortune, 27 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 5 Jun. 2026.

Legal Definition

capital gain

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