realized gain

(redirected from Realized Capital Gains)

Realized Gain

The amount by which the sale price of an asset exceeds its purchase price. Unless the realized gain came from a tax-exempt or tax-deferred asset, it is taxable. However, the type of taxation to which it is subject varies according to how long the asset has been owned. A realized gain from an asset owned longer than one year is usually taxed at the capital gains rate, while an asset owned for a period shorter than a year is often subject to the higher income tax rate. It is also called the recognized gain. See also: Unrealized gain.

realized gain

The amount by which the net proceeds from the sale of an asset exceed its cost of acquisition. When gains are realized, they become income for tax purposes. Compare unrealized gain.

Realized gain.

When you sell an investment for more than you paid, you have a realized gain.

For example, if you buy a stock for $20 a share and sell it for $35 a share, you have a realized gain of $15 a share. In contrast, if the price of the stock increases, and you don't sell, your gain is unrealized, or a paper profit.

Realizing your gains means you lock in any increase in value, which could potentially disappear if you continued to hold the investment.

But it also means you may owe tax on that profit when you sell unless the investment is tax exempt or you hold it in a tax-deferred or tax-free account. In a tax-deferred account, you can postpone paying the tax until you begin withdrawing from the account.

However, if taxes are due and you have owned the investment for more than a year when you sell, you pay tax at the long-term capital gains rate, which, for most types of investments, is lower than the rate at which you pay federal income tax on ordinary income.

realized gain

A tax concept meaning the taxpayer has received a profit—a gain—on the sale of real property,but,for various policy reasons codified into the Internal Revenue Code,the IRS chooses not to recognize the gain and,as a result,requires no payment of taxes at that time.The reason could be because the taxpayer took advantage of a 1031 exchange, because the gain was from the sale of a home and was less than the current exclusions, or because the property was taken by eminent domain and the proceeds reinvested within the required time period.

References in periodicals archive ?
State Fund is reporting over $662.5 million in premium and over $78.6 million in realized capital gains through July of this year.
During the first quarter, we recorded NII and realized capital gains per share of $0.36.
Wilson also noted that the company's full-year revenues grew to $40.7 billion, excluding realized capital gains and losses.
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The company's NII and realized capital gains for the quarter ended December 31, 2017 was USD 0.49 per weighted average common share.
The bank was successful in creasing its core earning and profit after tax, despite the compression in baking , spreads driven by the declining policy rats, on the back of volumetric growth in markup bearing assets, lower cost of deposits, higher fee and commission income and sizeable realized capital gains no sale of securities, especially PIBs.
INSURERS' NET INVESTMENT INCOME INCREASED TO $47.2 BILLION IN 2015 FROM $46.4 BILLION A YEAR EARLIER, BUT REALIZED CAPITAL GAINS DECREASED TO $9.4 BILLION FROM $10.3 BILLION, RESULTING IN $56.6 BILLION IN NET INVESTMENT GAINS FOR 2015, ESSENTIALLY UNCHANGED FROM 2014.
In the U.S., a mutual fund is required annually to distribute substantially all of its net investment income in the form of dividends and net realized capital gains. Distributions are then subject to tax when paid to shareholders and are included in a shareholder's income tax return.
In addition to the quarterly distributions, and in accordance with the minimum distribution requirements of the Internal Revenue Code for regulated investment companies, the Fund may pay an adjusting distribution in December which includes any additional income and net realized capital gains in excess of the quarterly distributions for that year.
According to ISO and PCI, the drop was driven by a decline in pretax operating income with the decline partially offset by an increase in realized capital gains on investments and lower federal and foreign income taxes.
However, taking another look at the A Trust example, if the trust provides the trustee discretion to make distributions to B for health, maintenance, and support, then the power to adjust might be exercised independently of realized capital gains. This would suggest that the discretionary power to adjust has no effect on the amount of the distribution.
During 9MFY14, the NI(U)T Fund realized capital gains of Rs2,369 million against Rs1,620 million in 9MFY13, depicting a remarkable YoY growth of 46% in realized capital gains.