An investment or capital loss is when your investment sales result in losses that exceed your gains. You can deduct up to $3,000 net capital losses a year from the income you report on your tax return ($1,500 if you are married filing a separate return). Long-term losses are defined as losses on investments you held for more than a year, whereas short-term losses are defined as losses on assets you held for a year or less.
Please consult the IRS website or a tax adviser for more information, GS&Co. does not provide legal advice and does not provide tax advice unless explicitly agreed to in writing between you and GS&Co. You should consult an independent tax professional regarding your personal circumstances and nothing communicated to you herein should be considered tax advice.