"Realized gain" is a term used to describe the difference between the price at which a security was sold and the price at which it was purchased. With type of gain, capital gains taxes generally will apply. If this is a security that has been owned for a long time, it will most likely fall into the category of long-term capital gains taxes. If the security was sold quickly after it was purchased, it will generally be taxed at the short-term capital gains tax rate. The short-term capital gains tax rate is usually higher than the long-term rate.

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