capital loss

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Related to Capital Losses: Capital gains

Capital loss

The difference between the net cost of a security and the sales price, if the security is sold at a loss. Also used in a more general context to refer to the market for stocks, bonds, derivatives and other investments.

Capital Loss

In real estate and investments, the difference between the purchase price and the sale price when the sale price is less. That is, when an investor buys a security or real estate and sells it for a lower price, he/she incurs a capital loss. One may use capital losses to offset capital gains to minimize one's liability for capital gains taxes; indeed, some investors do so deliberately. See also: Paper loss.

capital loss

The amount by which the cost basis of a capital asset exceeds the proceeds from its sale.

Capital loss.

When you sell an asset for less than you paid for it, the difference between the two prices is your capital loss.

For example, if you buy 100 shares of stock at $30 a share and sell when the price has dropped to $20 a share, you will realize a capital loss of $10 a share, or $1,000.

Although nobody wants to lose money on an investment, there is a silver lining. You can use capital losses to offset capital gains in computing your income tax. However, you must use short-term losses to offset short-term gains and long-term losses to offset long-term gains.

If you have a net capital loss in any year -- that is, your losses exceed your gains -- you can usually deduct up to $3,000 of this amount from regular income on your tax return. You may also be able to carry forward net capital losses and deduct on future tax returns.

capital loss

the deficit realized when an ASSET (house, SHARE, etc.) is sold at a lower price than was originally paid for it. Compare CAPITAL GAIN.

capital loss

the deficit realized when an ASSET (house, SHARE, etc.) is sold at a lower price than was originally paid for it. Compare CAPITAL GAIN.

capital loss

A loss recognized upon the sale of a capital asset.It is the difference between the sale price of the property and the adjusted basis.Just like capital gains,capital losses can be either short term or long term. Long-term capital losses may be set off against long-term capital gains. Short-term capital losses may be set off against short-term capital gains; one may not recognize a capital loss on the sale of a personal residence.

Capital Loss

The loss from the sale or exchange of a capital asset. Up to $3,000 ($1,500 if married and filing a separate return) of net capital loss is deductible annually with the excess carried forward to future years. Losses on personal-use assets are not deductible.
References in periodicals archive ?
Suppose John Smith has $20,000 of capital losses in 2009 and no capital gains.
Over accrual" could otherwise have arisen because of ring fencing (if the taxpayer did not have sufficient capital gains to use such losses) and because the Act only permits 50 percent of capital losses to be recognized.
Not only will option plans give potential to earn income, but they will now deliver corresponding capital losses to offset against gains.
However, if the client lacks disposable funds but has investments with both capital gains and capital losses, using a mix of sales from each investment that yields the desired net capital gain/loss would be the appropriate strategy, as demonstrated by the examples that follow.
Operating results plus realized capital losses yielded a net loss for the three months ending September 30, 1994 of $6.
2(21), these gains or losses would be treated as capital gains or capital losses, as the case may be.
companies that had as its primary purpose generating huge capital losses the companies could use to offset existing (or expected) capital gains.
Improved profit margins on annuity products and lower realized capital losses contributed to the strong performance of the life business.
10 (2006)), Merlo presented the following arguments: (1) his AMT capital-loss deduction on the worthlessness of the stock was not subject to the $3,000 annual limit on capital losses and, thus, he was entitled to an AMT net operating loss (AMTNOL) deduction that could be carried back to 2000; (2) the AMT treatment of his situation was contrary to Congressional intent; and (3) the AMT treatment of his situation was inequitable.
While IES was generating capital losses on each ADR purchase and sale (losses it carried back to offset capital gains in 1989 and 1990), overall the company made a profit because the dividends it received exceeded its capital losses.
The SRLY rules apply to net operating losses, capital losses, certain business tax credits, and other tax attributes incurred in a tax year before the member with the attribute becomes a member of an affiliated group (in respect of the new member's carryforwards) or after a member leaves the group (in respect of carrybacks).
The rating also recognizes that while operating income is improving, statutory net income is being restricted by realized capital losses on sales of underperforming mortgages and real estate.