GlossaryBeginner
Realized Gain
A gain that has actually been locked in by selling or disposing of an asset.
A realized gain is a profit that has actually been locked in through an action like selling or otherwise disposing of an asset, as opposed to a gain that exists only on paper while the asset is still held.
This is a general educational concept; how and when a gain becomes taxable can depend on jurisdiction-specific rules, and this isn't personalized tax advice.
Examples
- Selling an appreciated asset converts an unrealized gain into a realized one.
- Simply holding an asset that has increased in value doesn't, by itself, create a realized gain.