In finance, a capital loss is a financial loss incurred when an asset is sold for less than its original purchase price. Capital losses are most often incurred in stock and bond investments.
In taxation in the United States, capital gains are subject to capital gains tax, but if a taxpayer has suffered from capital losses in the same year, he can offset the gains with the losses to reduce his tax. If the losses exceed the gains for an individual, he can take up to a $3,000 tax deduction to correspond with the losses.
Normal depreciation of the value of an asset is not considered a capital loss, so if a taxpayer purchases a car for $30,000 and sells it a year later for $15,000 and this is a reasonable price for a year-old used car of that type, no tax deduction may be taken.
A balance computation method where all payments made during the billing cycle are subtracted from the outstanding balance at the beginning of the billing cycle, prior to the calculation and accrual of finance charges to the account.
Typically, companies with a capitalization under $250 million are called small-cap, companies between $250 million and $1 billion are mid-cap and companies over $1 billion are large-cap.
Profit And Loss Statement (P and L) A statement documenting business revenues and expenses for a specified time period to establish whether a business gained a profit or suffered a loss.
Capitallosses are most often incurred in stock and bond investments.
In taxation in the United States, capital gains are subject to capital gains tax, but if a taxpayer has suffered from capitallosses in the same year, he can offset the gains with the losses to reduce his tax.
Normal depreciation of the value of an asset is not considered a capitalloss, so if a taxpayer purchases a car for $30,000 and sells it a year later for $15,000 and this is a reasonable price for a year-old used car of that type, no tax deduction may be taken.
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