If the percentage turns out to be negative because the market value is lower than the original purchase price—also called the cost basis —there’s a loss on the investment. If the percentage is positive because the market value or selling price is greater than the original purchase price, there’s a gain on the investment.

## Q. How do you calculate gain or loss basis on a trade?

The difference between the purchase price and the sale price represents the gain or loss per share. Multiplying this value by the number of shares yields the total dollar amount of the transaction.

## Q. What is gain or loss basis?

Sometimes it’s called “cost basis” or “adjusted basis” or “tax basis.” Whatever it’s called, it’s important to calculating the amount of gain or loss when you sell an asset. Your basis is essentially your investment in an asset—the amount you will use to determine your profit or loss when you sell it.

## Q. How is recognized gain calculated?

Recognized gain is simply the amount of money you earn when you sell an asset. You can calculate your recognized gain by subtracting the basis (initial cost) from the selling price of the asset. As an example, assume a company sells stock for $10,000. If the basis is $2,500, the recognized gain is $7,500.

## Q. When is the percentage of gain or loss is positive?

If the percentage is positive because the market value or selling price is greater than the original purchase price, there’s a gain on the investment. The percentage gain or loss calculation will produce the dollar amount equivalent of the gain or loss in the numerator.

## Q. When to use YTD for foreign exchange gain or loss?

Realized and Unrealized Foreign Exchange Gain/Loss Realized and unrealized gains or losses from foreign currency transactions differ depending on whether or not the transaction has been completed by the end of the accounting period Year to Date (YTD) Year to date (YTD) refers to the period from the beginning of the current year to a specified date.

Is your taxable account a leaky bucket that generates a tax nuisance every year? Are you using capital gain offsetting rules to lower your tax bill each year…

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