Recognized Loss

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Recognized Loss

In accounting, the sale of an investment or asset for less than the purchase price. Individuals and companies may use recognized losses to offset taxable income from other gains. For example, if a company has $5,000 in capital gains in a given year and $2,500 in recognized losses, its taxable income on the capital gains is only $2,500. Recognized losses can also be applied to future years. For example, if a company has no taxable income in a given year, recognized losses may offset taxes on profits for up to a certain number of years. See also: Future income taxes.
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However, Matz stuck by her guns, saying the agency would "explore creative ideas" that could allow corporates to replace depleted capital "if confirmed losses are less than recognized losses.
Morris said some banks are in a position to sell off loans if they have the capital provisions to cover the losses and have not already recognized losses.
The Company recognized losses associated with the investment through the equity method of accounting and had reduced the carrying value of its investment in Hallwood Energy L.
The company recognized losses principally from the revaluation of investment securities and stocks in subsidiaries and affiliates resulting from a significant decline in share prices (*1), as well as from restructuring charges in relation to the restructuring of its LSI business (*2).
The deduction allowed for recognized losses on the sale, exchange or other disposition of a capital asset or property used in a trade or business is definitely related, and thus allocable to the class of gross income that such asset or property ordinarily generates in the hands of the taxpayer.
In the proposed regulations it had appeared such items incurred before the recognition period would not be recognized losses when paid.
Therefore, the recognized losses and recoveries of the recognized losses on current marketable equity securities held as of the balance sheet date are reported on the income statement for that period.
Earnings and profits from extraordinary gains are distinguished from other earnings and profits to reduce the amount of recognized built-in gains that may be offset by recognized losses that were not built-in.
Classes L through O have been depleted due to recognized losses and remain at 'Dsf/RE0%'.
Matz added that the NCUA is "exploring creative ideas" that will allow capital holders to benefit "if confirmed losses are less than recognized losses.
During the third quarter of 2008, through September 16, 2008, the Company has recognized losses of approximately $40 million on sales of securities of these issuers.

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