GlossaryBeginner
Capital Loss
The general concept of a loss from selling an asset for less than its cost basis.
A capital loss generally refers to a loss realized when an asset is sold or disposed of for less than its cost basis, the amount originally paid to acquire it.
This is an educational, general concept, not personalized tax advice; whether and how capital losses can offset gains depends on jurisdiction-specific rules.
Examples
- Selling an asset for less than its cost basis generally produces a capital loss.
- Some jurisdictions allow capital losses to offset capital gains, subject to specific rules.