Simple English definitions for legal terms
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A long-term capital loss is when you lose money by selling something you've owned for a long time, like a house or stocks. It's not a good thing because you're losing money, but it's different from losing something in a disaster or accident. The government has rules about how you can use long-term capital losses to reduce your taxes.
A long-term capital loss is when you sell or exchange a capital asset for less than what you paid for it after holding it for an extended period, usually at least 12 months. This loss can be used to offset capital gains and reduce your tax liability.
These examples illustrate how a long-term capital loss occurs when you sell a capital asset for less than its original cost after holding it for an extended period. This loss can be used to offset capital gains and reduce your tax liability.