Final answer:
A long-term capital loss from a personal-use asset refers to the financial loss when a non-investment asset held for over a year is sold for less than its purchase price. Such losses from personal-use assets are generally not tax-deductible.
Step-by-step explanation:
The question refers to long-term capital loss from a personal-use asset. In financial and tax terms, a capital loss occurs when you sell an asset for less than its purchase price.
The distinction between short-term and long-term depends on how long you held the asset before selling: if it's more than a year, it's considered long-term.
Personal-use assets are items like your home, car, or household goods that are used for personal enjoyment rather than business or investment purposes.
Capital losses from personal-use assets are typically not deductible for tax purposes. However, if the asset were an investment or business-related, you might use those losses to offset capital gains, lowering your taxable income.
In the case of a long-term capital loss, you could carry forward this loss to offset future capital gains in other tax years, subject to the IRS rules and limits for capital loss deductions.