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 ?
A special rule comes into play when the total is a negative amount and is referred to as a net capital loss.
You may sell at a higher price before the payout, which would increase your taxable gain or reduce your capital loss from the sale.
capital loss adjustment, if foreign capital gains do not exceed foreign capital losses, a taxpayer skips the U.
Presumably the taxpayer didn't expect to have enough capital gains during the taxable year and in the carryback and carryover periods to make the result from the capital loss plus $20 million cash as favorable as the fully deductible $98.
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.
Established in 1976, the $3,000 maximum capital loss deduction remains the same today The level of the deduction has never been indexed to inflation.
Short-term capital losses, including short-term capital loss carryovers, are first applied to reduce short-term capital gains.
Since the AMT applies only when it is greater than the regular tax, it is unlikely the taxpayer will ever receive any tax benefit due to the AMT capital loss carryforward.
Only 50 percent of a capital gain or capital loss is recognized in calculating income, and capital losses are only allowed as an offset against capital gains.
Therefore, Carl can deduct only $3,000 of his $40,000 net capital loss from the income on his 2015 tax return.
If a net capital loss results, up to $3,000 of net capital losses can offset ordinary income (Sec.
Although no distinction is made between business and nonbusiness capital gains and losses for purposes of determining net capital loss deductions and capital loss carry-forwards, it is necessary to separate business capital gains and losses from non-business capital gains and losses for NOL purposes.