capital gain

noun

profit from the sale of assets, as bonds or real estate.

capital gain

noun

the amount by which the selling price of a financial asset exceeds its cost

capital gain

Personal income earned by the sale of assets, such as stocks or real property. The gain is the difference between the price paid for the asset and the selling price. Most conservatives want capital gains taxed at a lower rate than ordinary income in order to stimulate investment, whereas most liberals oppose a lower rate for capital gains as a subsidy for the wealthy.

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Word History and Origins

Origin of capital gain¹

First recorded in 1920–25

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Example Sentences

Examples have not been reviewed.

Dear Liz: We read your recent column about capital gains and home sales.

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Dear Liz: You recently responded to an elderly couple who planned to move into assisted living, but were concerned about capital gains taxes on the sale of their home.

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The president has backed down from some of his tariffs, but Newsom alleges that the policies and economic uncertainty will lead to higher unemployment, inflation, lower GDP projections and less capital gains revenue for California.

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We are concerned that capital gains would take a big chunk out of the sales proceeds from our home, and that’s money we need to pay for assisted living.

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In addition to supporting high salary jobs, tech companies offer employees stock options, so the state benefits from taxing capital gains, the profit earned when the shareholder sells their stock for a higher price.

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capital formation capital gains tax

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