capital gain


The amount by which an asset's selling price exceeds its initial purchase price. A realized capital gain is an investment that has been sold at a profit. An unrealized capital gain is an investment that hasn't been sold yet but would result in a profit if sold. Capital gain is often used to mean realized capital gain. For most investments sold at a profit, including mutual funds, bonds, options, collectibles, homes, and businesses, the IRS is owed money called capital gains tax. opposite of capital loss.

Use capital gain in a sentence

Jimmy bought his house 5 years ago for $10,000 and he sold the house today for $30,000, so his capital gain was $20,000.

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I wondered how much capital gain there would be and then I wondered what else we had to think about to be successful.

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My income taxes weren't too bad this year but what really gutted me and pushed me into the higher tax bracket was the capital gain on selling my old house.

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estimated tax Income Deposit Security (IDS)