realized gain

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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 ?
2 million from realized profits to shareholders as follows (in proportion to each shareholder's ownership in paid capital as of April 23, 2015):
Arabian Cement Company (ACC) was the biggest booster to the sector profit growth in 2014 where it realized profits of SR646 million compared to SR192 million in 2013, or an increase of 236 percent.
LONDON: The European Bank for Reconstruction and Development expects to report realized profits of more than E800 million in 2011, after making record investments of over E9 billion last year, the bank said on Wednesday.
Some of these same students have also realized profits from Facebook Page marketing because of these targeted fan bases, unlike businesses that use other lower quality shortcuts.
The corporation's capital base was further strengthened through revaluation gains and realized profits.
Our overall sales have remained solid and in the past year we have effectively managed our business and have realized profits because of these efforts.
For example, a tax-exempt fund that has realized capital gains on its bond holdings that aren't off-set by losses may pay out those realized profits in the form of taxable dividends.
Arabian Cement Company (ACC) was the biggest booster to the sector profit growth in the first nine months of the year where it realized profits of SR501 million compared to SR299 million in the same period last year, or an increase of 67.
As a result of all the factors contributing to the growth of the enterprise, Warba Insurance registered realized profits worth KWD 1.