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capital loss
(redirected from Capital Losses)

   Also found in: Financial 0.01 sec.
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Noun1.capital loss - the amount by which the purchase price of an asset exceeds the selling price; the loss is realized when the asset is sold
financial loss - loss of money or decrease in financial value


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You can use your capital losses to offset your capital gains, and after that, you can use up to $3,000 of capital losses to offset ordinary income.
If the tax rates on capital gains or income rise, as most tax experts believe they will, taking capital losses now will be worth more in the future, since they can offset gains that would be taxed at a higher rate.
There are two ways that capital losses can diminish your tax bill.
 
 
 
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