WordValecapital gain
profit from selling an asset for more than it cost
In more detail
1. (noun) the profit made when you sell an asset (such as a house or stock) for more than you paid for it
2. (noun) the increase in value of an investment or property
Examples
- 1. When she sold her house for $500,000, which she bought for $300,000, she made a capital gain of $200,000.
- 2. He was happy with the capital gains from his stock investments this year.
How to use capital gain
Capital gain refers specifically to the profit realized or unrealized when an asset appreciates in value. It is a financial and accounting term used in formal contexts, especially regarding investments, real estate, and tax obligations. The term is neutral in tone and distinguishes between the increase in value (appreciation) and the actual profit (when the asset is sold).
Common phrases
- capital gains tax
- realize a capital gain
- long-term capital gain
- short-term capital gain
- capital gains liability
Synonyms
profit · gain · return · appreciation · unrealized gain
Opposites
capital loss · depreciation
Word family
capital gains (plural) · capital gains tax (noun phrase)
A common mistake
Learners often confuse capital gain with income or profit from other sources, or fail to distinguish between realized gains (when an asset is sold) and unrealized gains (when an asset simply increases in value but is not yet sold).
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