Long Term Loss

Definition - What does Long Term Loss mean?

Long Term Loss is a loss realized through the sale of a security at a price which is lower than its purchase price after being held for more than 12 months.

Testopedia explains Long Term Loss

If a customer buys a security and sells it for a loss after owning it at least one year he has realized a long term capital loss. It is important to note the tax consequence for a long term loss i.e.: capital losses can always be used to offset capital gains, dollar for dollar, in the tax year they are both incurred. However, if a customer's capital losses exceed his capital gains he may write off $3,000 of his capital losses against his ordinary income each year until the loss is no longer exists.

Connect with us

Testopedia on Linkedin
Testopedia on Linkedin
Tweat www.testopedia.com
"Testopedia" on Twitter


'@Testopedia'
Sign up for Testopedia's Free Newsletter!