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.
Washington state already ranks a dismal 45th out of the 50 states in tax friendliness because of a heavy burden of sales, capital gains, property and excise taxes. Betsy McCaughey, Boston Herald, 16 Mar. 2026 Those gains are distributed to remaining shareholders — and are a taxable event, likely generating both short- and long-term capital gain distributions. Darla Mercado, Cfp®, CNBC, 10 Mar. 2026 That means long-term gains can be taxed at a maximum rate of 28%, which is higher than the long-term capital gains rates that apply to many stocks and other securities. Angelica Leicht, CBS News, 10 Mar. 2026 Revenue hinges on capital gains from investments, bonuses to executives and windfalls from new stock offerings, all of which are grossly unpredictable. Seema Mehta, Los Angeles Times, 10 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 22 Mar. 2026.

Legal Definition

capital gain

see also:
Last Updated: - Updated example sentences
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