Recognized Gain

Recognized Gain means:
a taxable gain. In a like-kind exchange, the portion of realized gain that is taxable. Former IRC (check if this IRC provision is current here) §1001(c).

Example of Recognized Gain:

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Abe's land worth $75,000 has a tax basis of $10,000. He exchanges the land, under Section 1031, for Baker's warehouse, worth $70,000, plus $5,000 in cash. Of Abe's $65,000 realized gain, only $5,000 will be recognized gain.

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

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