Realized Gain or Loss

Realized Gain or Loss

The difference between the amount received upon the sale or other disposition of property and the adjusted basis of the property.
References in periodicals archive ?
If the identified position is used to settle the contract, the benefit of the loss should be realized as an adjustment to the taxpayer's realized gain or loss on the deemed disposition of the identified position for its FMV.
As the ED on accounting for debt and equity securities points out, market-value accounting actually is less volatile in the period in which the gains and losses are realized than it is to recognize all realized gain or loss in one period.
The realized gain or loss is the difference between the amount realized and the taxpayer's adjusted basis in the property; no COD income is realized.
However, if the transaction is not pursuant to the decree, it is a sale; thus, P will recognize any realized gain or loss and A's basis in the portion of the property transferred is the FMV (or the amount paid).
If the hedging instrument is disposed of within a reasonable period (seven days), however, the taxpayer should match the realized gain or loss on the hedging transaction with the gain or loss on the disposed item.