In thi s paper we examine capital income taxation of a reference dependent sufficiently loss averse investor in a two period portfolio choice model under full loss offset provisions. Capital income taxation with loss offset provisions has been found to stimulate risk taking in expected utility...

The importance of capital loss offset provisions in a world of risk is well documented in the tax literature. However, the potential deadweight losses (DWLs) owing to imperfect offset has not been fully explored. This paper develops a framework whereby that investigation can be carried out, and...

The importance of capital loss offset provisions in a world of risk is well documented in the tax literature. However, the potential deadweight losses owing to imperfect offset has not been fully explored. This paper develops a framework whereby that investigation can be carried out and utilizes...