When an asset is sold for less than the acquisition cost, a Capital Loss has arisen. This loss can be carried forward to set against future capital gains. In some cases, though not commonly, it can be set against other income in the same year.
A tax determination pertaining to losses that arise form the sale or exchange of capital assets. The loss is the difference between the cost or adjusted basis of an asset and the net proceeds from the sale or exchange of such asset.
Can deduct losses from capital gains at a rate of $3,000 per year. Can carry over from year to year but must have capital gains every year to offset losses.