capital loss

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  • noun

Words related to capital loss

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

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Net capital loss up to $3,000 can be deducted against other types of income.
Assuming Nick is in a 33% tax bracket, a $3,000 net capital loss would save him $990--much better than a tax bill of $4,500.
Net capital loss in a Form 1116 income category tax rate group.
Congress added [section]1234A in 1981 to address concerns that, in certain transactions where the result of a sale was going to be a loss rather than a capital gain, taxpayers could avoid unfavorable capital loss treatment by cancelling or otherwise terminating the transaction so there would have been no sale or exchange, thus generating an ordinary loss instead.
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.
Unlimited capital loss deductibility could lead to a significant decrease in federal tax revenues.
If you repurchase the software giant's shares within 30 days of the sale, your capital loss won't count.
As a result, Larry realizes a short-term capital loss of $2,000.
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.
If the election is not made, and the bankruptcy estate has assets to administer, causing it to remain open through 2006, the debtor will not be able to use the capital loss carryover on the 2005 full-year return and a greater capital loss would be available to the bankruptcy estate.
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.
However, the maximum annual net capital loss deduction is limited to $3,000 per year on a single or a joint income tax return.
Normally, worthlessness of investments or the loss on their disposal would be a capital loss.