realized gain

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 ?
The Management Fee will be reduced by any cash compensation paid by Cannae to its named executive officers; Hurdle Rate and Graduated Incentive Fee Structure: Subject to Cannae's investments generating an 8% IRR, 15% of realized gain between 1.0x to 2.0x return on a liquidity event and 20% of realized gain over 2.0x return on a liquidity event; High Water Mark: Upon each liquidity event where an incentive fee is earned, Cannae will deduct for any net unrealized losses looking at the investment portfolio as a whole.
PAUSE Figure 4 shows the variations of the realized gain, AR, and [absolute value of [S.sub.11]] of the element and array versus the frequencies when [W.sub.p] is changed.
Increase in net profits, during the same period, was mainly due to an increase in realized gain on sale of financial assets at fair value through profit or loss and a significant increase from gain on fair valuation of financial assets, available for sale upon reclassification to investment in associates.
Realized gains and losses result from selling activity for individual securities, but they also come from realized gain distributions from mutual funds.
This article incorporates accounting journal entries in a series of examples adapted from the Treasury Regulations in order to aid in one's understanding of 1) basis calculations for like-kind property received when there is boot (i.e., non-like-kind property) involved in the exchange, and 2) whether a realized gain or loss should be recognized and, if so, for what amount.
Monthly breakpoints make allocations "bumpy," in that there can be wide swings in the allocations as some months produce aggregate realized gain and other months produce aggregate realized loss.
The effect of each broadbanding technique is studied by evaluating the antenna's basic performance parameters, i.e., the reflection coefficient ([S.sub.11]), realized gain, radiation pattern and radiation efficiency, using CST Microwave Studio [19].
Next, the simulated realized gain patterns in the azimuth plane are obtained from 1.2 GHz and 1.3 GHz, as shown in Figure 6.
After subtracting the $190,000 adjusted basis in the house from the realized gain, Mary recognizes a $280,000 gain ($470,000-$190,000).
1.367(b)-3(c)(3) to include the E&P amount (if any) rather than to recognize their realized gain on the section 367(b) exchange.
* A seller of a principal residence at a gain had to defer that gain without limit if a replacement residence was purchased and occupied within two years before or after the sale of the "old" residence.(6) Gain had to be recognized to the extent of the lessor of 1) realized gain, or 2) "boot," i.e., the extent to which the "adjusted selling price" was not reinvested; and
A married couple filing jointly can exclude up to $500,000 of realized gain upon the sale of a principal residence on or after May 7, 1997, if certain criteria are met.