Taxable transaction


Taxable transaction

Any transaction that is not tax-free to the parties involved, such as a taxable acquisition.

Taxable Transaction

A transaction that results in one receiving income that may be taxed. Common taxable transactions are the reception of a paycheck or the sale of stock for a profit. Often, investors wait to sell securities until a certain time (such as a new calendar year) in order to minimize the taxable transactions that occur in a given period of time.