Definition
The profit realized when selling an asset for more than its purchase price. Uncle Sam would very much like a piece of this, thank you very much.
Example Usage
We held the property for five years and realized a capital gain of $120,000 when we sold it.
Origin
Economic and tax terminology; 'capital' refers to financial assets, 'gain' to profit.
Fun Fact
Long-term capital gains (held over a year) are taxed at preferential rates compared to short-term gains in the U.S.
Source: IRS tax code and financial standards
Related Terms
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See “Capital Gain” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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