Unrealized Appreciation

Unrealized Appreciation

An increase in the value of a property or other asset that the owner does not receive because the asset has not been sold. Unrealized appreciation occurs most commonly in real estate and securities because most other assets depreciate. Unrealized appreciation is not taxed until the asset is sold. However, unrealized appreciation may be used to calculate property taxes. See also: Net unrealized appreciation.
References in periodicals archive ?
Net unrealized appreciation (depreciation) on investments, net of provision for taxes of $1,169,234 and $1,697,004 as of September 30, 2015 and December 31, 2014, respectively
An individual who receives appreciated employer securities as part of a lump-sum distribution may elect under section 402(e)(4)(B) to have the net unrealized appreciation included as ordinary income in the year of the distribution.
183-2(b) to determine whether an activity was engaged in for profit, the unrealized appreciation cannot be used to establish a profit year for purposes of the presumption.
The potential danger is that the unrealized appreciation from years prior to purchase of the mutual fund could become your client's income tax burden.
In general, the more unrealized appreciation in the fund, the greater the potential tax liability.
To address this reduced level of contributions, Congress added section 170(e)(3) of the Code, which permits a taxpayer a deduction equal to its basis, plus one-half of the unrealized appreciation (up to a maximum of 200 percent of basis) for contributions made to a public charity or private operating foundation.
Generally effective beginning in 1993, the AMT preference for the unrealized appreciation in the value of capital gain property donated to charity is eliminated.
The aggregate of the net unrealized appreciation of portfolio securities and net realized loss on the sale of securities is $36,979,054, of which $38,861,507 represents net unrealized appreciation of portfolio securities.
Net unrealized appreciation (depreciation) relating to portfolio investments
Withdrawing company stock from a 401 (k) to take advantage of a tax break called net unrealized appreciation (NUA) sounds like a no-lose proposition, and most advisers tell their eligible clients to go for it.
Under those rules, employees are not taxed on the net unrealized appreciation (NUA) on the distribution, under Sec.
The aggregate of the net unrealized appreciation of portfolio securities and net realized gains on the sale of securities is $104,867,398, of which $100,804,798 represents net unrealized appreciation of portfolio securities.