capital loss Sentence Examples
- Selling an asset for less than its purchase price results in a capital loss.
- Investors may use capital losses to offset capital gains for tax purposes.
- The tax code allows individuals to deduct capital losses from their taxable income, reducing their overall tax liability.
- Experienced investors understand the importance of managing capital losses to mitigate their impact on investment returns.
- A portfolio's performance can be affected by the frequency and magnitude of capital losses.
- Market downturns can lead to significant capital losses for investors holding depreciating assets.
- Tax-loss harvesting involves strategically realizing capital losses to offset capital gains and reduce tax obligations.
- Financial advisors may recommend rebalancing investment portfolios to limit potential capital losses during periods of market volatility.
- Realizing a capital loss can be emotionally challenging for investors who may be tempted to hold onto depreciating assets in the hope of recovery.
- Understanding the tax implications of capital losses is essential for effective tax planning and wealth management.
capital loss Meaning
Wordnet
capital loss (n)
the amount by which the purchase price of an asset exceeds the selling price; the loss is realized when the asset is sold
Synonyms & Antonyms of capital loss
No Synonyms and anytonyms found
FAQs About the word 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
No synonyms found.
No antonyms found.
Selling an asset for less than its purchase price results in a capital loss.
Investors may use capital losses to offset capital gains for tax purposes.
The tax code allows individuals to deduct capital losses from their taxable income, reducing their overall tax liability.
Experienced investors understand the importance of managing capital losses to mitigate their impact on investment returns.
