Amount Realized

What you receive after you have sold any type of asset. The amount realized could be in the form of cold, hard cash or it could be the value of a piece of property that you received in the deal. It can also include any of your liabilities the buyer might assume.

Let’s say you decide to sell a house that you have paid off, but have fallen behind on your property taxes. So a house flipper offers to buy your house for $85,000 and will pay your back taxes of $10,000. You will then have a total amount realized of $95,000. Commissions and other fees are not included when you calculate the amount realized.