Certificate of loss
Upon request, the financial institutions will issue a certificate attesting the loss on the accounts held at the institute, this certificate is called a loss certificate . It is advisable to issue a loss certificate if the investor maintains accounts with several financial institutions because the custodian bank cannot automatically set off losses at different institutions . When changing securities accounts , the institution may not issue a loss certificate if the absorbing institution has already been informed of the amount of the losses that have not been offset. With the help of the loss certificate, taxpayers can offset losses against any capital gains that have arisen at different institutions in their income tax return.
