capital loss


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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 ?
Then, wait 31 days to sell the original position by year-end for a capital loss in 2018.
A special rule comes into play when the total is a negative amount and is referred to as a net capital loss.
As a net result, the net capital loss of the transaction in the second quarter is a negative EUR-21.4m which is Sanoma's share of the net profit of SBS.
capital loss adjustment pro rata among the Form 1116 income categories that have short- or long-term net capital gains.
The Tax Court applied [section]1234A, resulting in the $98.6 million being a capital loss. The Court reasoned that since the surrender terminated all of the taxpayer's rights in the securities, [section]1234A required that the loss be treated as a loss from the sale of a capital asset.
ABILs are losses that may occur where your small business corporation, or one you invest in, falls on hard times and you suffer a capital loss on shares or debt.
A metric related to equity investments--the Dow Jones Industrial Average (DJIA)--would generate much higher capital loss deductions.
There are two ways that capital losses can diminish your tax bill.
Short-term capital losses, including short-term capital loss carryovers, are first applied to reduce short-term capital gains.
However, when the stock became worthless in 2001, creating a large AMT capital loss, that loss could be carried forward only and used only to offset future capital gains.
Further, most of the debtor's tax attributes are transferred to the estate, including net operating loss carryovers; capital losses carryovers; passive loss carryovers; and tax basis and character of assets.
A new "reconciliation" rule has been added to prevent "over accrual" under the prescribed interest rate regime of the FIE Rules by recharacterizing capital losses on disposition as ordinary losses to the extent of prier FIE income inclusions.