Glossary term
Capital gain
A capital gain is generally the increase realized when disposition proceeds exceed adjusted cost base plus outlays and expenses connected with the disposition.
Plain meaning
What capital gain means
A capital gain is about a disposition. The calculation commonly compares proceeds of disposition with adjusted cost base plus outlays and expenses connected with the disposition. If the result is negative, the situation may involve a capital loss instead.
Formula role
Taxable capital gain
OpenBook capital-gain calculators commonly estimate the capital gain as proceeds of disposition minus adjusted cost base and selling costs entered in the calculator. 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 disclose the data source or assumption used.
Common boundary
Gain and loss are different results
If the calculation is negative, the result is not a capital gain. It may be a capital loss, and the tax treatment can differ from a positive gain. OpenBook calculators use loss wording and may show an allowable capital loss when a loss is produced.
Primary references
These links give the official tax context behind this term.