Definition
Capital gains tax is the tax levied on profits from the sale of capital assets like stocks or property. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
Two cofounders disagree until they define Capital gains tax. Once they agree it means “Tax levied on profits from the sale of capital assets like stocks or property”, the argument becomes a decision.
Common mistake
Using Capital gains tax as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Capital
Financial resources available for investment in business operations and growth.
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Capital Appreciation
Increase in the value of an investment over time, excluding dividends or interest.
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Capital Budgeting
Process of evaluating and selecting long-term investment projects for a company.
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Capital Cost
Cost of funds used to finance a business, including debt and equity expenses.
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