Investopedia

Continue to Site »

Recognized Gain

Filed Under » ,
Dictionary Says

Definition of 'Recognized Gain'

When an investment or asset is sold for an amount that is greater than what was originally paid. Recognizing gains on an asset will trigger a capital gains situation, but only if the asset is deemed to be capital in nature.

The amount of any capital gain will need to be reported for income tax purposes, and is measured by the selling price minus the purchase price.
Investopedia Says

Investopedia explains 'Recognized Gain'

Recognizing gains on an asset simply means that you made money on selling a piece of property or an investment. Depending on the nature of the asset and the tax laws of your jurisdiction, the gain on the sale may or may not be taxable.

Articles Of Interest

  1.

    Tax Tips For The Individual Investor

    We give you seven guidelines to help you keep more of your money in your pocket.

  2. Capital Gains Tax 101

    Find out how taxes are applied to your investment returns and how you can reduce your tax burden.

  3. Capital Gains Tax Cuts For Middle Income Investors

    Find out how TIPRA plans to slash taxes for those in the 10-15% tax bracket.

  4. How do I calculate my gains and/or losses when I sell a stock?

    To begin, you need to know your cost basis, or the price you paid for the stock. If you did not record this information, you should have an order execution confirmation and/or an account statement ...

  5. There Are New REITs On The Horizon

    For investors, the surge in new REIT activity is providing some pretty interesting dividend opportunities.

  6. 5 ETFs Flaws You Shouldn't Overlook

    Despite their popularity, exchange traded funds have some drawbacks that investors should know about.

  7. How are capital gains and dividends taxed differently?

    The U.S. tax code gives similar treatment to dividends and capital gains, although this will change slightly in 2013. Currently, ordinary dividends and short-term capital gains those on assets ...

  8. How Tax Treatments Of ETFs Work

    Here is a look at how ETFs are taxed and the effects that the tax treatment of ETFs will have on investors when they purchase them.

  9. Dividend Facts You May Not Know

    Discover the issues that complicate these payouts for investors.

  10. Simplify Your Portfolio

    Faced with an overabundance of choices, many investors forget to stick to the basics.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  2. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  3. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.

  4. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.

  5. Consequential Loss

    The amount of loss incurred as a result of being unable to use business property or equipment.

  6. Lease To Own

    An arrangement where an individual enters into a lease agreement with an owner with the inclusion of a clause that typically gives the individual the right, but not the obligation, to purchase the item leased at a predefined price and time.
Trading Center