Home  |  Personal Finance  |  Taxes  | 

Capital Gain vs Capital Loss on a Tax Return

What is capital loss?

To properly view this site, javascript must be enabled and Flash version 9 or higher must be installed.
Get the latest Flash player
Art Auerbach
Tax Director, Goodman & Company, LLP
http://www.goodmanco.com/  

Serving clients since 1932, Goodman & Company brings 75 years of knowledge and experience to the demands of today's ever-changing business environment. Throughout the past 75 years, we've never strayed from our mission-to provide each client with personal, high-quality service using the most up-to-date technology and resources.

What is capital loss?

Basic information to prepare an individual income tax return, Form 1040 and the basic schedules. This video is designed for those individuals who want to undertake the preparation of their tax return. There are tips and pointers for those who have attempted this feat in prior years.

This expert: 82,747 views

This series: 3,023 views

Download to Mobile Device
Tags:

Taxes

,

Tax

,

Income

,

Deduction

,

W2

,

1099

,

Government

,

Accountant

Comments:

0 (Read Comments) (Add Comment)

Print

Transcripts

Host: What is capital loss?

Art Auerbach: Capital loss is when you take your selling price and you compare it to your cost basis and you paid more for the property than you sold it for, then you have a loss and the statute allows you to offset your capital losses against your capital gains. If you have an excess of losses, you can deduct up to $3000 excess losses in the current year on your preparation and the balance of any capital loss is carried over indefinitely until you use it up by matching it against capital gains or subtracting the $3000 a year until you use up the loss. Now, the important thing to remember here is if you sell a personal asset, so this might be happening now with some folks who are selling their homes. They purchased when the real estate market was high, they are selling now when it's lower. Losses on the disposition or a sale of a personal asset are not deductible at all. So it has to be an investment asset or business property that you sell at a loss not personal property. So, if you are listening to the first question and you are listening to this one, it may seem patently unfair in the tax court, that gains on the sale of personal property are taxable but losses on the sales of personal property are not deductible.

Other Videos

  • Financial Planning Basics

    Financial Planning Basics

    In this video, financial planning professional and member of the Financial Planning Association®, Alexandra Armstrong, CFP®, describes the six important steps in the financial planning process. This video is designed for individuals who would like to create a financial plan and achieve their goals. This video series includes an overview of establishing your goals, gathering data for your financial plan, analyzing and evaluating your financial status, developing and implementing the plan and monitoring the plan and making necessary adjustments.
  • How does the rocks and sand technique work?

    How does the rocks and sand technique work?

  • How long should I plan on needing money during retirement?

    How long should I plan on needing money during ...

  • How often should I rebalance my portfolio?

    How often should I rebalance my portfolio?

  • Is it possible to improve a poor credit score?

    Is it possible to improve a poor credit score?

    In this video, Vikki Frank, Kandance Beamon, and Linda Stroman, financial education providers describe several key areas to address regarding debt reduction and elimination. This video is designed to deliver basic financial information to assist individuals and families to be able to identify goals and process strategies for their specific financial needs. The topics included in this video cover are: self-evaluation of debt load, budgeting strategies, understanding the effects on your credit and scores, why savings is important, how to develop a debt elimination plan, and the importance of financial education and how financial counseling may be useful.
  • What should I do if my purse or wallet is lost or stolen?

    What should I do if my purse or wallet is lost or ...

    In this video, Linda Sherry details the best ways to prevent identity theft and what you can do if you think your identity has been stolen.