net proceeds

Net Proceeds

The amount received after all costs are deducted from the sale of a piece of property or security.

Notes:

In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). Alternatively, in the case of a real-estate sale net proceeds represent the amount the seller receives minus realtor commissions, legal fees and any other closing costs. Capital gains taxes are paid only on the net proceeds.

See also: Capital Gain, Capital Loss, Closing, Deferred Income Tax, Drought Sale, Formal Tax Legislation, Land Value, Net Loss, Taxable Gain

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Net proceeds

Amount received from the sale of an asset after deducting all transaction costs.

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net proceeds

The revenues from the sale of an asset that have been reduced by commissions or other expenses directly related to the sale. Net proceeds from a security's sale are calculated by multiplying the security's price by the result derived from subtracting the brokerage commission and any taxes or other fees realized from the sale from the number of shares sold.