capital loss carryover

Definition

A capital loss that is not deductible in the current year because it exceeds the annual capital loss ceiling, but may be deductible in future years. In general, only $3000 in capital losses can be claimed in any one year, but the excess loss can be carried over indefinitely. also called loss carryover.

Use this term in a sentence

You should try to make sure that you know how any capital loss carryover may affect your future earning potential.

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The capital loss carryover occurred because we had wanted the tax advantage this year but we were satisfied with realizing the benefit next year as well.

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The type of capital loss that is not compensated in the current year because it exceeds the annum capital loss ceiling but can be compensated in the future years is known as capital loss carryover

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