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 ?
Realized profits from sales in prior years saw a 40-percent growth for the period, a sign that it can meet its completion commitments to its customers, the company said.
The National Bank of Kuwait-Egypt (NBK-Egypt) realized profits of EGP 251m at the end of the first half (H1) of 2018, according to the bank's financial results released on Sunday.
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The General assembly endorsed the recommendation of BOP's board of directors to distribute USD 34.2 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.
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. As of 31 December 2010, total shareholders' equity stood at $ 2.1 billion, a year-on-year increase of $367 million, representing a 21 percent growth.
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.
The new features to Tadawul Basic include:* Trade Summary -- this report will help clients to view realized profits & losses occurred in a certain time period (30 days) within the previous six months.* Advanced Calculator -- this feature will enable the client to view the portfolio holdings, pending orders, commission, and the profit percentage.
Realized profits and losses from foreign currency sales, Dec.
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.