The best magazine
- 1). Search through your asset portfolio looking for any stocks or other assets that have lost value from your original cost of the asset.
- 2). Sell the assets for a loss that are currently trading at a loss. You want your loss on this sale to be close to the capital gain you have. This will eliminate the gain on your taxes with a capital loss.
- 3). Search through your previous tax returns and look for years you had more than $3,000 of capital losses. If you had more than $3,000 of capital losses in a year, you can only deduct $3,000 that year. The remaining loss carries over to the following years. If you have any losses, this amount will cancel out capital gains.
Source: ...