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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
"Realized returns are ‘noisy,' and sometimes they are negative, but our framework says investors should expect those premiums every day, and in every market and sector."John Keefe
Dalbar, a financial research company, measures these effects by comparing potential versus realized returns achieved by individual investors.
From June 2012 to the end of our sample in June 2013, the ERP has changed little, despite substantial positive realized returns. It is worth keeping in mind, however, that there is considerable uncertainty around these estimates.
of North Texas), examining such specific topics as: current issues in European bank regulation in relation to government spending and borrowing, the relative effectiveness of qualified audit reports as accountability mechanisms in Spain, long-range anomalies in the real return on corporate equity compared with realized returns from the real assets on corporations, stability and the recently expanded commodity futures trading in oil and gold, unintended consequences of electric power regulations requiring retail utilities to buy all the power produced by wind and solar generators linked to the grind, and evidence concerning the value of technical analysis to portfolio performance.
Both invest mainly in "core" real estate-high-quality, fully leased buildings in major markets with strong cash flows-but their realized returns have been quite different (see Figure 1).
However, at least for the life settlement market, recent investigations reveal a discrepancy of expected and realized returns (see Beyerle, 2007; Gatzert, 2010).
Then they compare future realized returns of those securities against the disagreement index and other proxy measures of risk about those securities.
JPMorgan analysts Katherine Lucas Minyard and Igor Grinman estimate that Exxon's operating earnings will be $1.92 a share -- a 5 percent decline from the previous quarter as an offshoot of shortfalls in realized returns in the wake of weak oil and gas prices as well as seasonal weaknesses in European natural gas production.
Use P(xy) to denote the probability of the return combination: x on asset A and y on asset B; [[pi].sub.q](xy) is similarly used to denote the final wealth when the amount allocated to asset A is q and the realized returns are x (on A) and y (on B).