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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.
At the national level, among other things, lawmakers can institute and reform estate and inheritance taxes; raise tax rates on capital income; tax unrealized capital gains; close regressive loopholes; and institute net wealth taxes. Abigail Disney, Time, 20 Nov. 2025 For example, the top federal rate on long-term capital gains, 20%, is lower than the top marginal income tax rate, 37%. Greg Iacurci, CNBC, 16 Nov. 2025 For middle-class Americans, stocks and real estate have served as gateways to the American Dream, rewarding a modest investment with a lifetime of capital gains. Daniel De Visé, USA Today, 15 Nov. 2025 Harrell says that idea is ineffective because a city capital gains tax could easily be avoided by those who would be required to pay it. Preston Fore, Fortune, 14 Nov. 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 1 Dec. 2025.

Legal Definition

capital gain

see gain

Last Updated: - Updated example sentences
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