The amount a seller receives after costs and expenses are deducted from gross proceeds after the sale of an asset.
When someone sells an asset, the amount that individual (or other legal entity) receives after deducting costs and expenses from the gross proceeds of that sale is considered the seller’s net proceeds. This is an important calculation for anyone affected by capital gains taxes, as such taxes are only paid in regards to net proceeds, not gross proceeds.
Wife: “We sold the Picasso this morning.”
Spouse: “Oh, really? How did it go?”
Wife: “After the art dealer’s fees, the restoration costs and some taxes, the net proceeds are going to amount to roughly $1.4 million.”
Spouse: “Excellent. Now I can afford to buy our daughter a pony and a Barbie dreamhouse.”
Wife: “Now she wants an aardvark and a hoverboard.”