capital loss

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Related to Capital Losses: Capital gains

cap′ital loss′

loss from the sale of assets, as of bonds or real estate.
ThesaurusAntonymsRelated WordsSynonymsLegend: 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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In using this advantageous strategy, the private foundation (1) does not needlessly forgo the capital loss, because the loss offset the capital gain; (2) does not pay the 2% excise tax on the recognized capital gain (which it might have to pay if the asset were sold in a year when no capital losses are available); and (3) now has an increased tax basis in the asset sold and repurchased (which will decrease future recognizable capital gain).
For book purposes, capital losses are reported in the year incurred.
The Service will waive this ban if capital losses and NOLs are either (1) $50,000 or less or (2) resulting from a short period of nine months or longer and are less than the loss for a full 12-month period beginning with the first day of the short period.
Capital losses are particularly distasteful to corporations because (1) they can be used only to offset capital gains and (2) net capital losses have a limited life.
Net income includes net realized capital losses and other items, which are excluded from operating earnings
2002-37 applies the same terms and conditions applicable to a carryback of a net operating loss (NOL) generated in a short period under the prior procedure, to capital losses generated in the short period.
Under this provision, losses on the sale or exchange of a small corporation's stock (section 1244 stock) may be deducted as ordinary losses rather than as capital losses subject to the capital loss limits.
While risky assets, such as below investment grade bonds and mortgages, as a percentage of invested assets declined in 2004, Fitch views TIAA's investment strategy as incorporating greater than average credit risk, which has resulted in higher than expected realized credit-related capital losses again in 2004.
This is much more favorable treatment than the limited deduction allowed for capital losses.
AIG has determined that realized capital losses with respect to certain impaired investments were not recorded in the appropriate period and the restatement will thus affect the timing of previously reported realized capital losses, but will have no effect on consolidated shareholders' equity at December 31, 2004.
731 gain can be used to trigger passive losses as well as offset capital losses.
The result of such consolidation is to recharacterize approximately $200 million of previously reported capital losses as an equal amount of underwriting losses relating to auto warranty business from 2000 through 2003.