excess of money or fair value of property received on sale or exchange over the carrying value of the item. An example is the sale of a fixed asset when cash received exceeds book value. Gains also occur when the cash payment to eliminate a debt is less than the liability's carrying value. An example is retiring debt before maturity at a price below book value. Gains relate to incidental and nonrecurring transactions of the business.
increase in value, measured by the difference between the adjusted tax basis and the selling price.
the amount of amplification in an audio amplifier or similar circuit. Adjusting the gain is one way to control the loudness of the sound from a sound card.
profit on the sale of an asset. A gain is realized when a stock, bond, mutual fund, futures contract, or other financial instrument is sold for more than its purchase price. If the instrument was held for more than a year, the gain is taxable at more favorable capital gains tax rates of 5% or 15%, depending on the investor's tax bracket. If held for 12 months or less, the gain is taxed at regular income tax rates.
an increase in money or property value.
Example: Abel sells for $100,000 land that he bought for $40,000. He recognizes a $60,000 gain excluding property and income taxes.
