unrecognized gain

unrecognized gain

A gain on the transfer of real property, but for which there is no current tax consequence because of various provisions of the Internal Revenue Code, such as the ability to reinvest proceeds and defer taxes until a sale of the replacement property. See 1031 exchange.

References in periodicals archive ?
The corridor, used to determine the materiality of accumulated unrecognized gain or loss, is the greater of 1) 10% of the beginning balance in the PBO or 2) the market-related value of plan assets.
Generally, investors can deduct a loss on the disposition of one or more positions only to the extent that the loss is more than any unrecognized gain they have on offsetting positions.
453A(c)(3) defines deferred tax liability as the amount of unrecognized gain on the installment note obligation as of the close of the tax year multiplied by the maximum rate of tax in effect for the taxpayer.
The court concluded that an unrecognized gain "does not rise to the level of income" and is not an "item of income for tax purposes" under Sec.
However, any remaining unrecognized gain from the sale in this arrangement must be reported on the estate's income tax return.
Under the straddle rules, when investors realized a loss on one offsetting position in actively traded personal property, they generally could deduct this loss only to the extent that the loss exceeded the unrecognized gain in the other positions in the straddle.
The difference is deferred and amortized when the cumulative unrecognized gain or loss exceeds 10% of the greater of beginning-ofyear balances of either the fair value of plan assets or PBO; this amount is referred to as the "corridor" amount.
Before Settlement Impact of Settlement Projected Benefit Obligation $ (100,000,000) $ 40,000,000 Assets 120,000,000 (42,000,000) Funded Difference 20,000,000 (2,000,000) Transition Obligation 5,000,000 0 Prior Service Cost 0 0 Unrecognized Gain (35,000,000) 15,588,000 (Accrued)/ Prepaid Pension Expense $ (10,000,000) $13,588,000 After Settlement Projected Benefit Obligation $ (60,000,000) Assets 78,000,000 Funded Difference 18,000,000 Transition Obligation 5,000,000 Prior Service Cost 0 Unrecognized Gain (19,412,000) (Accrued)/ Prepaid Pension Expense $ 3,588,000
With this election, if the replacement cost was $90, the book value of the replaced asset equals the replacement value less the unrecognized gain, $90 - $35 = $55.
This gain reflected a portion of the unrecognized gain resulting from the award that will be amortized into earnings over future periods.
The court further found that unrecognized gain is conceptually different from discharge-of-indebtedness income.