Realized gain is the amount of gain that the investor made from the sale of an asset. It is calculated as the net sales price received (sales price of the asset less any transaction or closing costs) less the owner’s adjusted tax basis of the asset.
As an example calculation, if an investor has a $1,000,000 adjusted basis in a property and sells that assets for $2,000,000 and incurs $25,000 in closing costs pertaining to the sale, the investors realized gain would be $975,000 ($2,000,000 sales price less $25,000 closing costs less $1,000,000 adjusted basis).