What are realized investment gains?

A realized investment gain or capital gain is the profit when a security, such as a stock, bond or Exchange-Traded Fund (ETF), is sold for more than the purchase price (including any required adjustments). Long-term gains are defined as gains on investments you held for more than a year and are generally subject to lower taxes than short-term gains, defined as gains on assets you held for a year or less.

Certain actions, such as withdrawing funds from your portfolio or changing your portfolio, may result in the sale of ETFs. Any such sale may result in realized investment gains and associated tax implications.

Please consult the IRS website or a tax adviser for more information. We are a registered investment adviser and we do not provide legal advice and do not provide tax advice unless explicitly agreed to in writing between you and GS&Co.. You should consult an independent tax professional regarding your personal circumstances and nothing communicated to you herein should be considered tax advice. If you don’t already have one, we strongly encourage you to contact a tax professional who can provide you with a comprehensive assessment of your tax situation