Word: Capital Loss
Definition: A "capital loss" is the amount of money you lose when you sell something (like property, stocks, or other investments) for less than what you paid for it. You realize this loss only when you actually sell the item.
How to Use: - "Capital loss" is a noun, so you can use it to talk about financial situations involving investments. - It often appears in discussions about taxes, finance, and investments.
Example: - "Last year, I sold my stocks for $5,000, but I bought them for $7,000. So, I had a capital loss of $2,000."
Advanced Usage: In finance, capital losses can be used to offset capital gains (profits from selling other investments) when calculating taxes. If your losses are greater than your gains, you might be able to deduct some of those losses from your taxable income.
Word Variants: - Capital Gains: This is the opposite of capital loss. It refers to the profit made from selling an asset for more than its purchase price. - Loss: A more general term that can refer to any decrease in value or amount, not just in capital.
Different Meanings: - "Capital" can also refer to a city that serves as the seat of government or wealth in the form of money or assets. - "Loss" in other contexts might refer to losing a game, missing a person, or not having something you used to have.
Synonyms: - Financial loss - Investment loss - Economic loss
Idioms and Phrasal Verbs: - There aren't specific idioms or phrasal verbs directly related to "capital loss," but you might hear phrases like: - "Take a hit" - which means to suffer a loss, especially in financial terms. - "Cut your losses" - which means to stop investing time or money in something that is failing to prevent further losses.