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.
By donating appreciated stock, a client could avoid a significant capital gains tax liability while also getting a substantial charitable deduction. — Jessica Dickler, CNBC, 8 Oct. 2026 The government also raised capital gains tax rates in October 2024, with the higher rate jumping from 20% to 24%. — Emma Burleigh, Fortune, 7 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 This is especially important because California, unlike the federal government, taxes capital gains at the same rate as ordinary income, so each wave of initial public offerings by tech companies generates large revenues for the state. — Nicholas Lemann, New Yorker, 4 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 9 Oct. 2026.

Legal Definition

capital gain

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