Hey,
Everyone dreams of financial independence. To make that happen, you will need to invest your hard-earned money. Investment can either lead to gain or loss. I will now share with you what is capital loss. Keep reading to know the exact meaning.
What is capital loss ?When the investment you make results in loss rather than gain, it is deemed as a capital loss. Many people call it the opposite of capital gain. It happens when an investment is sold on less than the purchase price or adjusted basis.
There is only one way to offset capital loss, it is to have capital gain. The taxable income is reduced by the capital loss amount. Now that you know capital loss meaning, you should know the formula to calculate it.
Capital Loss = Purchase Price – Sale Price.
There are three different types of capital losses, they are :
Realised losses
Unrealized losses
Recognizable losses.
Further, the capital loss is sub-categorized based on the holding period of the investment - short-term losses and long-term losses.
This is all from my end on what is capital loss. Hope the meaning is clear to you.
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Authors Of The Question
What is capital loss ?
Hari
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2 Year
2022-05-08T15:34:50+00:00 2022-05-08T15:34:52+00:00Comment
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