Capital Loss

Capital loss is a loss recognized when a capital asset is sold or otherwise disposed of for less than its adjusted basis, subject to tax limitations.

Why this matters to income investors

A realized loss reduces capital, though tax treatment may offset other gains.

How to use capital loss in your research

Use the payer’s final tax document and your purchase records to identify the amount, tax character, and basis effect. Tax treatment can depend on your circumstances, so do not infer it from the cash payment alone.

This material is general education and information, not individualized investment, tax, or legal advice.