Long Term Loss is a loss realized through the sale of a security at a price which is lower than its purchase price after being held for more than 12 months.
Applying "Long Term Loss" to Securities Exams:
If a customer buys a security and sells it for a loss after owning it at least one year he has realized a long term capital loss. It is important to note the tax consequence for a long term loss i.e.: capital losses can always be used to offset capital gains, dollar for dollar, in the tax year they are both incurred. However, if a customer’s capital losses exceed his capital gains he may write off $3,000 of his capital losses against his ordinary income each year until the loss is no longer exists.