difference between the amount received from the sale or disposal of an asset and its carrying value. Realized gains and losses are shown in the income statement. They are also typically included in arriving at taxable income.In some cases, a realized loss can occur even though no sale has taken place. Examples are the write-down of a long-term investment due to a permanent decline in value, and the transfer of a security from long-term to shortterm when market value is below cost.