Recognized Gain
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 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. |
Related Definitions
Articles Of Interest
-
Tax Tips For The Individual Investor
We give you seven guidelines to help you keep more of your money in your pocket. -
Capital Gains Tax 101
Find out how taxes are applied to your investment returns and how you can reduce your tax burden. -
Capital Gains Tax Cuts For Middle Income Investors
Find out how TIPRA plans to slash taxes for those in the 10-15% tax bracket. -
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 ... -
There Are New REITs On The Horizon
For investors, the surge in new REIT activity is providing some pretty interesting dividend opportunities. -
5 ETFs Flaws You Shouldn't Overlook
Despite their popularity, exchange traded funds have some drawbacks that investors should know about. -
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 ... -
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. -
Dividend Facts You May Not Know
Discover the issues that complicate these payouts for investors. -
Simplify Your Portfolio
Faced with an overabundance of choices, many investors forget to stick to the basics.
Free Annual Reports