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 ?
McDonald (2006) and Rubinstein (1984) establish a formula for the calculation of this expected return, always from the buy side and there are also papers that analyze options realized returns, like Benesh and Crompton (2000), Coval and Shamway (2000), Bondarenko (2003) or also Broadie et.
In particular, I will allow for heterogeneity in both abilities, and in realized returns to human capital over a life-cycle.
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.
Then they compare future realized returns of those securities against the disagreement index and other proxy measures of risk about those securities.
For some time, the industry has struggled with how to properly use these 'apples and oranges,' or expected returns and realized returns.
In IDC's most recent survey, respondents said they had realized returns ranging from 39 percent to more than 2000 percent on BI initiatives.
There are three explanations for the association between realized returns and stock characteristics (size, book-to-market, past returns, and past sales growth): 1) data mining among stock characteristics; 2) association between stock characteristics and risk; and 3) association between stock characteristics and cognitive errors by investors.
One approach relies on contemporaneously observable market rates and the other employs lags of ex post realized returns.
The managers that can most effectively translate the value of their research ideas into realized returns, while still responding to their regulatory requirements, will gain a competitive edge.
Our objective in this paper is to study and provide empirical evidence and insights about the realized returns of call and put options contracts from the seller point of view, by analyzing the net payoffs of those contracts with respect to the capital committed under the assumption that the contracts are held open until expiration, or in other words, what empirical evidence says about how risky and profitable these contracts are for the seller.
2005 Seybold events will also present real-world examples of traditional and enterprise publishing operations that have realized returns on their investments, allowing professionals to face new roles associated with the new digitally driven publishing workflow process.
Fremont Partners' realized returns since 1991 are approximately 3.