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 ?
capital loss adjustment, taxpayers must make the capital gain rate differential adjustment to further reduce foreign long-term (but not short-term) capital gains and also capital losses, by multiplying a portion of them by a percentage.
* If your other allowable deductions for the year exceed your income, you should, to the extent possible, avoid realizing any further capital losses for the year.
There are two ways that capital losses can diminish your tax bill.
Top 100 Performance Monitor Key Findings, 2008 Top 100 Performance Monitor Key Findings, 2008 Life Insurance Industry General Account Assets 3.2% Separate Account Assets -28.1% Surplus -4.7% Net Premiums 2.4% Net Investment Income -4.3% Net Gain from Operations -74.9% Net Unrealized Capital Losses -$51.7 B * * Refers to the 2008 figure, not a year-over-year percent change Source: Highline Data
Corporate taxpayers must also net capital losses with capital gains.
In certain other cases, pursuant to draft subsection 94.2(20) and draft paragraph 94.2[4)(b), these gains or losses would be treated as capital gains or capital losses, as the case may be.
Capital losses are deducted in full against capital gains.
Andy Hodge, who leads Deloitte's employer solutions tax practice in Birmingham, said: 'Individuals who have made a healthy profit on exercising their options can now go on to claim substantial capital losses, which can in turn be offset against capital gains to reduce their tax liability.
28 due to liquidating a subsidiary and capital losses, company sources said Wednesday.
The company could have responded by selling off assets but said that would have been tantamount to a fire sale resulting in large capital losses to the company and its policyholders.
The Company's NII and realized capital losses for the quarter ended December 31, 2018 was 38c per weighted average common share.
The second request of the stock market players is to permit carry forward of capital losses up to 3 years and in this regard, the finance ministry has advised revisions which should be undertaken in the ITO to allow carry forward of capital losses made on disposal of shares.