realize

To understand. To bring to fruition. To obtain the advantage or benefit of a thing, as taking a profit on an investment. To realize means to bring into actual possession. It is ordinarily used in contrast to hope, or anticipation. A man may hope to sell his property for a certain sum, but until he actually sells it and receives the money, or its equivalent, he cannot be said to have "realized" either his hopes or his profits. Lorillard v Silver, 36 NY 578, 579. Under section 22 of the Revenue Act of 1934, realization of income is the taxable event, rather than the right to receive it, and realization is not deemed to occur until the income is paid. But the decisions and regulations have consistently recognized that receipt in cash or property is not the only characteristic of realization of income to a taxpayer on the cash receipts basis. Where the taxpayer does not receive payment in money or property, realization may occur whe n the last step is taken by which he obtains the fruition of the economic gain which has already accrued to him. Helvering v Horst, 311 US 112, 85 L Ed 75, 61 S Ct 144.