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.
If investments have been held more than a year, lower long-term capital gains tax rates apply. Medora Lee, USA Today, 20 June 2026 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. Queenie Wong, Los Angeles Times, 18 June 2026 The suit claims the summary fails to make clear that the question’s passage would also reduce the tax rate for long-term capital gains income. State House News Service, Boston Herald, 18 June 2026 This is not a capital gains tax. Shehan Chandrasekera, Forbes.com, 18 June 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 26 Jun. 2026.

Legal Definition

capital gain

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