Ordinary Loss
About Ordinary Loss:
for income tax purposes, a loss that is deductible against ordinary income and is usually more beneficial to a taxpayer than a capital loss, which has limitations on deductibility. (Special federal provisions on ordinary loss treatment is a favorable treatment of gains and losses from the sale or exchange of certain assets; the gains are given capital asset treatment, and the losses are given ordinary treatment. These provisions are for federal purposes only). Former IRC (check if this IRC provision is current here) §65.
See also the entries Income Tax and State Income Tax in the American Encyclopedia of Law.
Description and Definition of Ordinary Loss
A loss that is not a capital loss and that is fully deductible against ordinary income.
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