What is an Investment Loss?
Investment losses are capital losses in which an investor sees the value of an investment decrease to a point that is no longer valued at cost of the original purchase. While an investment loss is a phenomenon that just about every investor experiences at one time or another, the event is rarely viewed in a positive light. However, it is possible to incur an investment loss and still retain confidence and even possibly come out ahead in the long term. In some cases, it is possible to make use of an investment loss in order to minimize the amount of taxes owed. Depending on the type of investment and the location where the investor resides, the ability to write off all or part of the loss as a tax deduction for the period covered by the tax return may be a possibility. When an investor has other investments that did perform well, the loss may be completely covered and the tax burden eased slightly. This can mean that over the annual period, the loss actually ends up saving the investor
