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.
When a business is sold, owners or investors are exempt from capital gains taxes up to $10 million, or 10 times the original basis of the investment, whichever is greater. Robert Frank, CNBC, 3 July 2025 In his 2020 tax return, Ramaswamy reported a nearly $175 million windfall from capital gains. Alexander Coolidge, The Enquirer, 2 July 2025 The industry supports high-paying positions and generates substantial tax revenue through stock options and capital gains when employees sell their shares. Piper Heath, Los Angeles Times, 2 July 2025 Those investors were permitted to delay or eliminate paying taxes on capital gains by rolling their profits into needy parts of the country to develop real estate or build businesses. The Editorial Board, Chicago Tribune, 27 June 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 8 Jul. 2025.

Legal Definition

capital gain

see gain

Last Updated: - Updated example sentences
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