Realized Gain

Dictionary Says

Definition of 'Realized Gain'

A gain resulting from selling an asset at a price higher than the original purchase price. Realized gain occurs when an asset is disbursed at a level that exceeds its cost of book value. While an asset may be carried on a balance sheet at a level far above cost, any gains while the asset is still being held would be considered unrealized, as the asset is only being valued at a fair market value.
Investopedia Says

Investopedia explains 'Realized Gain'

Once an asset that is being held on the books at an unrealized gain is sold for a realized profit, a firm will predictably see an increase in its current assets and a gain from sale. Such a gain may lead to an increased tax burden, since realized gains from sales are typically taxable income. This is one drawback of turning an unrealized "paper" gain into a realized gain.

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Related Definitions

  1. Capital Gain

    1. An increase ...
  2. Capital Loss

    The loss ...
  3. Liquidation

    1. When a ...
  4. Realized Loss

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  5. Taxable Event

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  6. Capital Gains Tax

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  7. Amount Realized

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  8. Fair Market Value

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  9. Unrealized Gain

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  10. Asset Accumulation

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