Realized Gain

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Gain that has occurred financially, but is not necessarily taxed.
See also boot ; recognized gain .

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In a tax-free exchange, a gain that has occurred financially, but is not necessarily taxed.
See BOOT, RECOGNIZED GAIN, SECTION .


Example: Abel’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. Abel’s realized gain is $65,000. None of Abel’s realized gain is recognized, because he did not receive boot.

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A gain resulting from selling an asset at a price higher than the original purchase price.

Investopedia Says:
There may be tax consequences for a realized profit.

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