capital loss


Also found in: Dictionary, Financial, Wikipedia.
  • noun

Words related to capital loss

the amount by which the purchase price of an asset exceeds the selling price

Related Words

References in periodicals archive ?
stock and recognized a $10,000 capital loss for the tax year ending Dec.
To the extent you have a capital loss in excess of $3,000 for the year, you may want to consider selling stocks that will generate capital gain to offset the excess capital loss.
If your business experiences both a capital and a business loss in a tax year but previously reported a capital gain in one of the last three taxation years, it may be more beneficial for you to carry the capital loss back first to offset the capital gain and then use the business loss to offset any remaining income for that tax year.
If a net capital loss results, up to $3,000 of net capital losses can offset ordinary income (Sec.
If you repurchase the software giant's shares within 30 days of the sale, your capital loss won't count.
The taxpayer then argued that the AMT capital loss had created an alternative tax net operating loss (ATNOL), which could be carried back to 2000 and offset against alternative minimum taxable income (AMTI) for that year, creating a refund.
For instance, if the debtor sold stock that generated a $100,000 gain in March 2005, and files a Chapter 7 petition in June 2005, and if the debtor had a $120,000 capital loss carryover from 2004, the election would allow the debtor to avoid incurring a post-petition 2005 year tax liability since the short-year election will cause the carryover to be applied against the gain.
While Canco would not be entitled to the immediate use of any capital loss generated because of "stop loss" rules under the Act, the advantage of the transaction is that it would drive down Canco's "designated cost" and thus lower the amount required to be reported under the FIE Rules.
Now the Revenue will deem the sale of the shares to have created a capital loss for the individual of pounds 900 - pounds 3,100 sales proceeds, less the pounds 3,000 market value of shares on the date of exercise, less the pounds 1,000 subject to income tax on exercise.
Extending the capital loss carryback period to five years.
If the taxpayer has a diverse portfolio of mutual fund and stock holdings, some of these holdings would (if redeemed at the discretion of the taxpayer) trigger a capital gain, while others (if redeemed at the discretion of the taxpayer) would trigger a capital loss.
Section 165(c)(2) deductions also frequently prompt IRS oversight, and in many instances, the standard tax preparation software does not adequately address this deduction, since it's generally geared to the more familiar section 1211 capital loss treatment.
1211 capital loss treatments, which could result in your client paying more taxes than required.
Realize Capital Loss On Stock While Preserving Investment Position: In some instances, it may be beneficial to dispose of a stock position in order to recognize the capital loss.