capital gains
Capital gains (noun) means the profit made when an asset such as a share, a property or a work of art is sold for more than it cost to buy. Usually plural, though a single such profit is a capital gain. Example: “Almost all her capital gains that year came from selling the flat.”
How to use capital gains
Learner’s notesIn plain EnglishThe profit you make when you sell something for more than you paid for it.
Neutral and standard in financial, legal and tax writing. Normally plural; the singular capital gain refers to one specific profit.
Note that gains here are only counted when the asset is sold; simply owning something that has gone up in price does not produce a capital gain.
Trace the full origin ↓Fill the gap
Can you complete this real example?
Almost all her _____ that year came from selling the flat.
Etymology
From capital in its financial sense of wealth held as assets, plus gain, an increase in value.
Synonyms
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Related words
Rhymes for capital gains
See all rhymes for capital gains →Frequently asked questions
What is the difference between a realised and an unrealised capital gain?
An unrealised gain, sometimes called a paper gain, is the rise in value of something you still hold. It becomes a realised gain at the moment you sell and the profit actually exists as money. Tax rules in most countries are concerned with realised gains, so a rise on paper is generally not a taxable event by itself.
What is the difference between capital gains and dividends?
A capital gain comes from selling an asset for more than you paid. A dividend is a payment a company makes out of its profits to people who hold its shares, and you receive it without selling anything. Many countries tax the two differently.
How is a capital gain calculated?
In broad terms it is the sale price minus what the asset cost you, where the cost usually includes purchase price and certain associated expenses. That cost figure is often called the cost basis or base cost. The precise rules, allowances and rates differ by country.
What is the meaning of capital gains?
"capital gains" (noun) means the profit made when an asset such as a share, a property or a work of art is sold for more than it cost to buy. Usually plural, though a single such profit is a capital gain.