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.
Donating appreciated stock or other property, rather than selling it and giving cash, can be a way to avoid capital gains taxes while still claiming the deduction. Kansas City Star, 30 Mar. 2026 Ordinary rates are almost always higher than those of capital gains. Michelle Fox, CNBC, 30 Mar. 2026 And their investors pay capital gains taxes. Tomas J. Philipson, Fortune, 28 Mar. 2026 For years, many crypto holders have balked at selling — even for major purchases like a home — because doing so would mean giving up potential upside while also incurring capital gains taxes. Bloomberg, Oc Register, 26 Mar. 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 2 Apr. 2026.

Legal Definition

capital gain

see also:
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!

More from Merriam-Webster