Capital Loss

May 9, 2024

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A capital loss occurs when the value of an investment decreases below its purchase price and is realized when the asset is sold. This can occur in any asset class like stocks, bonds, or real estate. For taxation purposes, capital losses can often offset capital gains, thereby reducing the taxable income of an investor. Recognizing how to manage capital gains and losses can significantly affect an investor’s net returns and tax liabilities.

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About the author 

Jenna Lofton, an expert in stock trading, investing, and financial planning, combines over a decade of experience with rigorous academic training. Holding dual MBAs in Finance and Business Administration from the University of Maryland, Jenna's expertise is grounded in a deep understanding of the financial markets. Her career, which started on Wall Street, has evolved into empowering others through her insights and analyses in the dynamic world of finance.

Based in New York City, Jenna's approach is informed by her hands-on experience as a former financial advisor and her keen observation of market trends. She is known for translating complex financial concepts into actionable strategies, making her a valuable resource for both seasoned investors and newcomers to the stock market. Her commitment to financial literacy and her ability to demystify investment principles have made her a respected and authoritative voice in the investment community.

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