capital loss

(redirected from Capital Losses)
Also found in: Dictionary, Thesaurus.
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.
Mentioned in ?
References in periodicals archive ?
Net income, which includes net realized capital losses and other items, was $0.
Aetna Reports Fourth-Quarter and Full-Year 2008 Results
Traders also must consider the extent of any short-term capital losses being carried forward as a result of the trading losses incurred in 2000 (and so far in 2001).
Planning for active trader status and mark-to-market rules in a volatile market
As previously reported, the result of the adjustment will be to reverse capital losses for the years 2000 through 2003 and recognize a corresponding amount of underwriting losses in 2000.
AIG Nears Completion of Internal Review; Will Restate Results Provides Update on Internal Review and Timing of Form 10-K
In any tax year in which a combined group has two or more members with capital losses, and the combined group has a net capital loss, each member's capital loss must be aggregated based on its pro rata share of the combined group's total capital loss.
Current corporate income tax developments
Foreign capital gain is the amount by which foreign capital gains (the sum of short- and long-term gains) exceed foreign capital losses (the sum of short- and long-term losses).
Adjustments of foreign capital gains and losses for the foreign tax credit
Capital losses are generally usable only to offset capital gains (with an additional deduction for individuals of net capital loss against ordinary income, usually limited to $3,000 per year).
Uncertain tax consequences with [section] 1234A: IRC [Section] 1234A is a confusing section that can cause uncertainty in sophisticated tax planning and even in routine compliance
There are three types of tax losses--business (or non-capital) losses, capital losses and "allowable business investment" losses.
Is a loss all bad?
Under the Regulated Investment Company Modernization Act of 2010, this tax effect attributable to the Fund's capital loss carryovers (the conversion of non-taxable returns of capital into distributions taxable as ordinary income) will no longer apply to net capital losses of the Fund arising in Fund tax years beginning after Nov.
Delaware Enhanced Global Dividend and Income Fund Announces Dividends
Due to tax relief provided by Congress that contained shades of the wherewithal-to-pay concept, IRC section 1211(b) enables an individual taxpayer to deduct for adjusted gross income (AGI) up to $3,000 of net capital losses per tax year.
Factoring inflation into the capital loss deduction: is it time for reform?
Planning the time when you recognize capital losses may also be important.
Year-end tax planning (part 2)
By going through your stocks and funds held in taxable accounts and culling the losing culprits, you could wind up with $10,000 to $20,000 or more in total capital losses.
Make lemonade from lemons: turn your investment losses into a sweet tax-time advantage
However, to the extent capital losses exceed capital gains, non-corporate taxpayers may use up to $3,000 of net capital losses to offset other taxable income.
Chapter 21: Capital gains and losses

Financial browser ?
Full browser ?