# Capital Loss

*Saving & Investing — Finicade finance glossary*

A capital loss is selling an asset for less than you paid — the mirror image of a capital gain, and in most tax systems a useful one. Losses offset gains first, then a limited amount of ordinary income, and the unused remainder usually carries forward indefinitely. That makes a loss a real, storable asset rather than merely a mistake. The rule that constrains it is the wash-sale rule, which disallows the deduction if you buy back a substantially identical security too quickly.

**Also known as:** realised loss, investment loss

**Related terms:** [Capital Gain](https://finicade.com/glossary/capital-gain), [Cost Basis](https://finicade.com/glossary/cost-basis), [Tax-Loss Harvesting](https://finicade.com/glossary/tax-loss-harvesting), [Wash Sale Rule](https://finicade.com/glossary/wash-sale-rule), [Unrealized Gain](https://finicade.com/glossary/unrealized-gain)

Source: https://finicade.com/glossary/capital-loss