Answer:
Capital Loss
Deducted as loss on the tax return
Explanation:
Capital Loss refers to losses that occur when you make and investment into something and then sell it at a later time for a lower price than at what was originally purchased. For example:
the 1,000 shares were originally purchased at $77.25 per share and then sold for $75.
The capital loss incurred is [($77.25 - $75) x 1000)] = $2250.
If the tax payer's capital losses are greater than the capital gains, the difference of the two amounts will be deducted as a loss on the tax return since it is an investment property. This cannot be done for those held for personal use.
