When do you consider a realized gain or loss on the income statement?

A realized gain or loss is recognized on the income statement when an asset is sold or disposed of, resulting in a difference between the sale price and the asset's carrying value. This occurs at the point of transaction completion, meaning the asset has been transferred to the buyer and payment has been received. Until the asset is sold, any changes in its value are considered unrealized gains or losses and are not reflected in the income statement.