capital gain


Definition of capital gain

: 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 Trump, obviously, felt differently, that big corporate and capital gain tax cuts would unleash the economy and entrepreneurs. oregonlive, "Oregon’s Ron Wyden sets ambitious goals for new Democratic Senate majority," 13 Jan. 2021 Someone who bought Tesla stock in March at its lowest price of $71 and then sold those shares in December at its highest price of $718 would have a capital gain of $647 per share. Tim Grant, Star Tribune, "Great year in the markets? Watch out for that tax bite that might be coming," 23 Jan. 2021 The Internal Revenue Service treats any crypto transaction as taxable event, like selling a stock or a piece of real estate—meaning a PayPal user who buys a coffee or groceries from a crypto account could be forced to declare a capital gain. Jeff John Roberts, Fortune, "PayPal plans a much wider embrace of cryptocurrency, including Venmo use," 2 Nov. 2020 For example, if a retiree has a big capital gain one year from an asset sale, that could push him into a higher Medicare bracket two years later. Neal Templin, WSJ, "That Extra Penny in Retirement Income Can Really Cost You," 15 Oct. 2020 If the daughter sells it for that amount, no capital gain tax would be owed. Liz Weston, oregonlive, "Liz Weston: What happens to tax basis on home sale after wife’s death?," 19 Sep. 2020 So if a crypto holder uses it to buy something or exchanges one cryptocurrency for another, there’s usually a capital gain or loss to report on the tax return. Laura Saunders, WSJ, "The IRS Sets a Trap for Cryptocurrency Tax Cheats," 25 Sep. 2020 If Raul sells the house for $1 million, the profit (or capital gain, in tax parlance) would be $200,000. Liz Weston, oregonlive, "Liz Weston: What happens to tax basis on home sale after wife’s death?," 19 Sep. 2020 So the 11% drop in the valuation would leave investors with a 1% annual capital gain. Shawn Tully, Fortune, "Will tech stocks stumble or slide? What the fundamentals tell us," 16 Sep. 2020

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'capital gain.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of capital gain

1921, in the meaning defined above

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Time Traveler for capital gain

Time Traveler

The first known use of capital gain was in 1921

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Statistics for capital gain

Last Updated

18 Feb 2021

Cite this Entry

“Capital gain.” Dictionary, Merriam-Webster, Accessed 25 Feb. 2021.

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More Definitions for capital gain

capital gain

Legal Definition of capital gain

— see gain

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