Glossary term

Capital gain

A capital gain is generally the increase realized when disposition proceeds exceed adjusted cost base and selling costs.

Plain meaning

What capital gain means

A capital gain is about a disposition. The calculation commonly compares proceeds of disposition with adjusted cost base and eligible selling costs. If the result is negative, the situation may involve a capital loss instead.

Calculator context

Taxable capital gain

Only a portion of a capital gain may be included in taxable income. That portion is the taxable capital gain. OpenBook calculators use stated inclusion-rate assumptions and should disclose the data source or assumption used.