Realized Gain

Realized Gain

Realized Gain means:
a gain that has occurred financially but is not necessarily taxed. Actual gain realized from the disposal of an asset.

See also other Tax Terms and Definitions in U.S.A.

boot; recognized gain; Section 1031.

Example of Realized Gain:

Learn more about tax examples, explanations and calculations here.

Bob's land has a tax basis of $10,000. Its market value is $75,000. He exchanges the land, tax free under Section 1031, for Baker's warehouse, which was appraised at $75,000. Bob's realized gain is $65,000. None of this realized gain is recognized, however, because Bob did not receive boot.


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