Investor Glossary-capital lossInvestor Glossary-capital lossInvestor Glossary-capital lossInvestor Glossary-capital lossInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Capital Loss

The HTML to link to this page
 

A capital loss is a decrease in the value of an asset below its purchase price. Capital loss reduces a taxpayer's income tax. If you've held the asset more than one year, the capital loss is long-term; if you've held it for one year or less, it's a short-term capital loss. A capital loss is realized once the capital asset is sold at a loss; until the asset is sold, the capital loss is unrealized. Once the capital loss is realized, it will go to reduce a taxpayer's capital gains tax. If the capital loss is greater than the IRS preset limit (i.e: $3,000 in 2007), the capital loss over such IRS preset limit (i.e. carryover capital loss) can be carried to the next tax year. Note that if the carryover capital loss is a short-term capital loss, it will go to offset a short-term gain in the next tax year, not a long-term gain, and vice-versa.



Rate this Capital Loss definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: in escrow, wholly-owned subsidiary, risk management, phantom income, class C shares, deferred tax, minority interest, 1031 exchange, command economy, stock market close, VIX, 144a, average price per share, cancelled check, deferred revenue, 401a, 1035 exchange, EBITDA, required rate of return, debt service coverage, option premium, current ratio, margin rate, open position, limit order, reverse mortgage, FICO score, Zero Cost Collar, covered put, ex-dividend, FTSE, real GDP, liquidity ratio, LIBOR, labor relations, balance sheet, implied volatility, Key Rate Duration, irrevocable trust, diluted share, quality assurance, retained earnings, stock split, inflation, APR, ex-dividend date, dividends payable, annual return, per diem


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use