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.

BREAKING DOWN '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.

  1. Gain

    An increase in the value of an asset or property. A gain arises ...
  2. Capital Loss

    The loss incurred when a capital asset (investment or real estate) ...
  3. Capital Gain

    1. An increase in the value of a capital asset (investment or ...
  4. Deferred Income Tax

    A liability recorded on the balance sheet that results from income ...
  5. Exempt Income

    Certain types or amounts of income not subject to federal income ...
  6. Exemption

    A deduction allowed by law to reduce the amount of income that ...
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