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.
The state has no income tax and no capital gains tax, and Miami in particular has branded itself as a business-friendly alternative to high-tax cities in California and elsewhere. Marco Quiroz-Gutierrez, Fortune, 2 Apr. 2026 Unwinding a large position all at once can trigger a sizable capital gains bill, but spreading sales over multiple years can help reduce the impact. Doug Ashburn, Encyclopedia Britannica, 2 Apr. 2026 For instance, if the trust receives dividends or sells stocks, the income or capital gains tax burden falls on the grantor, the person who funds the trust. Hayley Cuccinello, CNBC, 2 Apr. 2026 The money is largely from capital gains taxes from Wall Street profits that were made before the recent downturn and are paid chiefly by millionaires and billionaires in Fairfield County. Christopher Keating, Hartford Courant, 1 Apr. 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 7 Apr. 2026.

Legal Definition

capital gain

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