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.
Investors in opportunity zones may receive federal tax incentives when investing eligible capital gains through Qualified Opportunity Funds, according to the news release. Dylan Sherman, Arkansas Online, 2 July 2026 Royalties and license fees are classified as ordinary income under the tax code, taxed at the same rates as wages, not the preferential long-term capital gains rates that apply to appreciated assets held over a year. Shehan Chandrasekera, Forbes.com, 2 July 2026 Receipts from capital gains taxes tend to be even slimmer, as most wealth-building assets go unrealized. Tristan Bove, Fortune, 2 July 2026 That wipes out capital gains taxes on any increase in the value of the assets over the owner's lifetime. Aimee Picchi, CBS News, 1 July 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 6 Jul. 2026.

Legal Definition

capital gain

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