Answer:
YES
Explanation:
If a stock you own is worth say $30,000 and you eventually sell it for $10,000, that is considered a loss on your taxes and you can count it as a loss on your taxes.
The situation given in the scenario is obviously that of capital erosion or capital loss.
Just like it would have been counted as capital gains if you had made a profit on the sale of the shares which would have been taxable, so also is it possible to make tax deductions on your returns when you make capital losses.
Hence, the loss amount can be deducted (offset) from other capital gains or ordinary income in your tax return.