Glossary term
Capital loss
A capital loss can arise when disposition proceeds are less than adjusted cost base plus outlays and expenses connected with the disposition.
Plain meaning
What capital loss means
A capital loss is the opposite side of the same disposition calculation used for a capital gain. It can arise when the sale or disposition proceeds are lower than the adjusted cost base plus outlays and expenses connected with the disposition.
Formula role
How OpenBook uses it
When the result is negative, OpenBook capital-gain calculators use capital-loss terminology instead of showing a negative capital gain. Where modelled, the output can also show an allowable capital loss.
Common boundary
Loss use is rule-based
A capital loss is not normally treated like an ordinary expense. The allowable portion and timing of use depend on capital-loss rules, including limits on applying capital losses against taxable capital gains.
Primary references