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Realized Gain/Loss

Realized gain/loss is the cumulative amount of realized gains and losses resulting from the sale of securities. A realized loss is the monetary value of a loss that results from a trade. A realized gain is the excess of cost basis (or adjusted cost basis) over the proceeds from the sale.

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What information is available on the Realized Gain/Loss page?

This page displays trade details of the selected account's short- and long-term gains, short- and long-term losses, and wash sales, as defined by the IRS, grouped by security for the selected tax year.

All trade details are grouped and summarized at the security level. You can click the + icon next to each symbol to expand and view all trade details for that security in the selected account and tax year.

This page also displays details for any trades with Unknown Cost Basis in the selected account during the selected tax year. Cost basis is the dollar amount originally paid for a security, including the amount of reinvested dividends, reinvested capital gains, and adjustments for all subsequent activity such as corporate actions and wash sales.

What are the reasons for unknown cost basis?

The most common reason that cost basis is unknown is because security shares were transferred to the Fidelity from a non-Fidelity account.  

How are gains associated with an Equity compensation plan or Employee Stock Purchase Plan treated?

Gains associated with an Equity compensation plan or Employee Stock Purchase Plan may be treated as ordinary income rather than a capital gain for income tax purposes.

Can I use the information displayed on the Realized Gain/Loss pages for tax preparation?

Fidelity is required to report proceeds from sales of securities to the Internal Revenue Service. Fidelity provides cost basis and associated realized gain and loss information to you as a courtesy service. Such information may not reflect all adjustments necessary for tax reporting purposes. You should verify cost basis and corresponding gain/loss information provided by Fidelity against your own records when calculating reportable gain or loss resulting from a sale.

You are solely responsible for the accuracy of cost basis and gain/loss information reported to federal, state, and other taxing authorities. Fidelity makes no warranties with respect to, and specifically disclaims any liability arising out of your use of, or any tax position taken in reliance upon, Fidelity-provided cost basis and gain/loss information.

How are lots for restricted stock sales determined?

If securities held in your account are restricted for sale under your company's stock plan rules, Fidelity will use the FIFO method for lots available for sale.

Why are some of my losses deferred?

If you incur a realized loss on a security and you repurchase additional shares of the same security 30 days before or after the sale, the repurchase may result in the loss being deferred under the "wash sale" provisions of the Internal Revenue Code. Purchases include shares acquired through reinvested dividends. Other transactions may result in loss deferrals including "straddles" and certain option strategies. You should consult your tax advisor for additional information.

How is cost basis at the time of sale determined?

Unless otherwise specified, Fidelity determines cost basis at the time of sale based on the first-in, first-out (FIFO) method (for unrestricted securities other than open-end mutual funds) or the average cost-single category (ACSC) method (for open-end mutual funds). Consult your tax advisor for further information.

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