Dictionary of Finance and Investment Terms: long-term loss
long-term loss
negative counterpart to long-term gain as defined by the same legislation. A long-term loss is realized when an asset held for more than 12 months is sold at a lower price than its adjusted purchase price. A capital loss can be used to offset a capital gain plus $3,000 of ordinary income except that short-term losses exceeding short-term gains must first be applied to long-term gains, if any.
