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.
Qualified dividends, which carry holding requirements and meet other IRS rules, are taxed at the lower long-term capital gains rate (0% to 20%, depending on income bracket). Zev Fima, CNBC, 26 Dec. 2025 So no one pays taxes on the $499 billion capital gain. Dave Smith, Fortune, 22 Dec. 2025 The long-term capital gains tax rates for the 2025 tax year remain at 0%, 15%, or 20%. Andrea Riquier, USA Today, 15 Dec. 2025 Charters over the past decade have largely ballooned in enterprise value, and teams have made capital gains by selling them — to the tune of tens of millions of dollars. Alex Zietlow, Charlotte Observer, 11 Dec. 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 31 Dec. 2025.

Legal Definition

capital gain

see gain

Last Updated: - Updated example sentences
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