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.
Prop 40’s critics have warned the tax is unlikely to be a one-time deal and also raised alarms about the forms of wealth that would be targeted, such as unrealized capital gains and privately held stock that’s key for startups. — Jason Ma, Fortune, 9 Oct. 2026 After surging for two years during the pandemic, tax revenues fell sharply in 2022-23, reflecting several factors including stock market losses that weakened capital gains income and related tax payments. — Chaewon Chung updated October 8, Sacbee.com, 8 Oct. 2026 This increases the original purchase price of the investment to current fair market value, Lucas said, which may help reduce capital gains taxes in the future. — Jessica Dickler,kate Dore, Cfp®, Ea, CNBC, 8 Oct. 2026 That may affect tax brackets, Social Security taxation, Medicare IRMAA surcharges, state taxes, capital gains planning and cash flow. — Ronald Stair, Forbes.com, 6 Oct. 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 19 Oct. 2026.

Legal Definition

capital gain

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