Investopedia

Continue to Site »

Recognized Loss

Filed Under » ,
Dictionary Says

Definition of 'Recognized Loss'

When an investment or asset is sold for less than its purchase price. Recognized losses may be reported for income tax purposes and then carried over into future periods.
Investopedia Says

Investopedia explains 'Recognized Loss'

Recognized capital losses can be used for effective tax planning strategies. For example, if an investor has taxable capital gains for a given year of $10,500 and is able to recognize a loss on another investment for $2,500, this loss can be applied against the taxable capital gains. Therefore, this investor's net taxable capital gains for the year are $8,000 rather then $10,500.

Articles Of Interest

  1.

    Avoiding Too Much Tax On Your Distributions

    IRA assets can't be taxed twice - find out how to avoid paying the second time around.

  2. Tax Tips For The Individual Investor

    We give you seven guidelines to help you keep more of your money in your pocket.

  3. 10 Steps To Tax Preparation

    Follow these simple steps to get you ready for April 15.

  4. To Sell Or Not To Sell

    Learn some tips on how to exit a position to the best of your advantage.

  5. Know Your Stock Cost Basis

    Understanding equity cost basis is critical for tracking the gains or losses of an investment.

  6. There Are New REITs On The Horizon

    For investors, the surge in new REIT activity is providing some pretty interesting dividend opportunities.

  7. 5 ETFs Flaws You Shouldn't Overlook

    Despite their popularity, exchange traded funds have some drawbacks that investors should know about.

  8. How are capital gains and dividends taxed differently?

    The U.S. tax code gives similar treatment to dividends and capital gains, although this will change slightly in 2013. Currently, ordinary dividends and short-term capital gains those on assets ...

  9. How Tax Treatments Of ETFs Work

    Here is a look at how ETFs are taxed and the effects that the tax treatment of ETFs will have on investors when they purchase them.

  10. Dividend Facts You May Not Know

    Discover the issues that complicate these payouts for investors.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Validation Period

    The amount of time necessary for the premium on an insurance policy to cover the commissions, the cost of investigation, medical exams and other expenses associated with the issuance of the policy.

  2. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  3. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  4. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  5. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  6. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.
Trading Center