REALIZATION

realization,n.1. Conversion of noncash assets into cash assets. 2.Tax. An event or transaction,

such as the sale or exchange of property, that substantially changes a taxpayer’s economic position

so that income tax may be imposed or a tax allowance granted. Cf. RECOGNITION(4). [Cases:

Internal Revenue 3115, 3178; Taxation 996. C.J.S. Internal Revenue §§ 61, 110; Taxation §§

1732–1733.] — realize,vb. [Blacks Law 8^th]