Capital Gain
/ˈkæpɪtl ɡeɪn/
Definitions
- (n.) The profit realized from the sale or exchange of a capital asset, which is the excess of the amount realized over the asset's adjusted basis.
She reported a capital gain of $10,000 from selling her investment property.
- (n.) In tax law, the amount subject to capital gains tax after accounting for exemptions and deductions.
The taxpayer's capital gain was reduced by the allowable exclusion under the tax code.
Forms
- capital gains
Related terms
See also
Commentary
Capital gain is a fundamental concept in taxation and investment law, typically materializing upon disposal of property; clarity in defining the asset's basis and timing of the gain is essential in legal drafting.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.