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Amount Realized

   Also found in: Wikipedia 0.01 sec.
Amount Realized
The amount for which one sells an asset. The amount realized may be a realized gain (in which the sale price exceeds the original purchase price) or a realized loss (in which the sale price is less than the original purchase price). It may also break even. The amount realized likely will affect one's taxable income.

Amount Realized
The amount received by a taxpayer on the sale or exchange of property. The amount received is the sum of the cash and the fair market value of any property or services plus any of the seller's liabilities assumed by the purchaser. Determining the amount realized is the starting point for arriving at realized gain or loss.


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46 in late fees The bank notes that: "Barnett is liable for the full payment of all accrued and unpaid interest, including payment of any deficiency between the amount finally adjudged to be due and owing on the consolidated mortgage and the amount realized from the foreclosure sale or sales of the mortgaged property, up to the amount of the guaranteed interest payments, for which a deficiency judgment is being sought by this action against Barnett.
Consequently, it appears the liability that is in excess of the property's FMV would not be included in the amount realized by the partnership if the property is sold or as COD income if the amount of the debt in excess of FMV is forgiven.
The amount realized from the sale is the greater of the sales price of the property or the unpaid debt.
 
 
 
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