Capital Loss
The loss incurred when a capital asset (investment or real estate) decreases in value. This loss is not realized until the asset is sold for a price that is lower than the original purchase price. Investopedia Says:
A capital loss is essentially the difference between the purchase price and the price at which the asset is sold, where the sale price is lower than the purchase price.
For example, if an investor bought a house for $250,000 and sold the house five years later for $200,000, the investor would realize a capital loss of $50,000. Related Terms:
Barefoot Pilgrim
Capital Asset
Capital Gain
Capital Gains Yield
Phantom Gain
Realized Loss
Tax Gain/Loss Harvesting
Turkey
Unrealized Gain
Unrealized Loss |