realized loss

Recognized Loss

In accounting, the sale of an investment or asset for less than the purchase price. Individuals and companies may use recognized losses to offset taxable income from other gains. For example, if a company has $5,000 in capital gains in a given year and $2,500 in recognized losses, its taxable income on the capital gains is only $2,500. Recognized losses can also be applied to future years. For example, if a company has no taxable income in a given year, recognized losses may offset taxes on profits for up to a certain number of years. See also: Future income taxes.

realized loss

The amount by which an investment's acquisition cost exceeds the net proceeds from its sale. A realized loss, as opposed to a paper loss, may be used to reduce taxable income. Compare unrealized loss.
References in periodicals archive ?
Under the proposed regulations, A would have a realized loss equal to the disappearing basis in the shares redeemed, but would not be able to recognize it until the earlier of the "final inclusion date" or the "accelerated loss inclusion date.
Last year, the stock market decline resulted in a realized loss of $280,000, compared to this year's realized gain of $350,000.
This recapture rule would not apply if the sum of all recapture amounts was less than 10% of the realized loss.
Thus, a realized loss should be recognized when the position into which the loss is capitalized is disposed of, regardless of whether there is unrecognized gain in the "larger" position.
For a condemnation, the taxpayer does not recognize a realized loss, because the condemnation of a personal-use asset is not deductible.
For example, a consolidated group that realized a $200 loss on the sale of a subsidiary member that left the group with a $90 net operating loss carryover may have $90 of its realized loss disallowed.
At that time, Gibson announced that it had incurred a realized loss of $3 million and had capped its exposure at an additional $24.
NASDAQ: GIBG) announced today that as a result of unauthorized transactions in connection with the Company's program of interest rate swaps which had been entered into for the purpose of hedging its debt in a falling interest rate environment, the Company has incurred a realized loss of $3 million.
June 11 /PRNewswire/ -- The First Connecticut Capital Corporation, formerly First Connecticut Small Business Investment Company, today reported a net realized loss of $4,390,431 or $3.
Generally accepted accounting procedures require that an unrealized loss in a long-term investment be reported in the income statement as a realized loss when the reduction in the market value is considered "other than temporary.
23 ~PRNewswire~ -- The First Connecticut Small Business Investment Company today reported a net realized loss and decrease in unrealized depreciation on investments of $1,248,405 or $1.
The company noted it had a net realized loss on investments resulting from the sale of foreclosed real estate properties and write- off of existing loans of $9,984,819 for the fiscal year.