Number: RL31562
Title: An Analysis of the Tax Treatment of Capital Losses
Authors: Thomas L. Hungerford and Jane G. Gravelle, Government and Finance Division 
Abstract: This report provides an overview of these issues related to the tax treatment of capital losses. It explains the current income tax treatment of losses, describes the historical treatment of losses, provides examples of the tax gaming opportunities associated with the net loss deduction, examines the distributional issues, and discusses the possible stimulative effects of an increase in the net loss deduction.
Pages: 13
Date: October 20, 2008