Dictionary of Business Terms: ordinary loss
ordinary loss
for income tax purposes, loss that is deductible against ordinary income; usually more beneficial to a taxpayer than a capital loss, which has limitations on deductibility.
Dictionary of Real Estate Terms: ordinary loss
ordinary loss
for income tax purposes a loss that is deductible against ordinary income. Usually more beneficial to a taxpayer than a capital loss, which has limitations on deductibility.
Example: The sale of inventory at a loss results in an ordinary loss, whereas the sale of an investment at a loss results in a capital loss.
