Long-Term Capital Loss Definition
Long-Term Capital Loss is a tax term relating to the profit on the sale of capital assets held for over a year. If the asset is sold for less than it was purchased, a long-term capital loss occurs. Capital gains and losses can be netted out in a tax year, that means that long-term losses can be deducted from long-term gains. This way the amount on which potential tax may be due is reduced. Up to the first $3,000 of any net gain or loss can be carried over into future years.