About Taxes: Dealing with Losses in the Financial Markets

	Taxes

In the Spotlight | More Topics |

	from William Perez No one likes to lose money, but with turbulence in the financial markets, many people have seen their investments lose significant value. Learn more about different types of losses and how they impact your taxes.
In the Spotlight

Taking a Loss on the Stock Market Stocks, bonds, and mutual funds sold at a loss are called capital losses. They first offset any capital gains from securities you sold. Any net capital loss (in excess of your gains) is tax-deductible up to $3,000 per year. The loss is deductible only if you sell, and this may make sense as part of an overall plan to rebalance your investment portfolio.              More Topics Deadline Extended for Areas Affected by Hurricane Ike Tax News and Commentary How to Find a Tax Preparer Lower Your Taxes Tax Debts & Amnesty Which Tax Form to File? Amended Return Claiming Bank Deposit Losses When banks fail, depositors are usually repaid through the Federal Deposit Insurance program. Any uninsured deposits might lose value. And those losses can be deducted on a tax return as a casualty loss.   Casualty and Theft Losses People and businesses suffering the loss of property from natural disaster can claim a casualty loss. Like other deductions, there's various limitations built into how much of a loss can be claimed. For taxpayers in presidential disaster areas, there's an extra twist where the casualty deduction can be claimed on last year's tax return as a way to get an extra refund faster to help recover.     Sponsored Links   Lose Weight Together Calorie Count Groups Join a group on Calorie Count today and track your progress with people like you. Find groups by age, location, weight loss interests and much more!

Advertisement

Visit Related About GuideSites:

Search About

Sign up for more free newsletters on favorite topics. You are receiving this newsletter because you subscribed to the About Taxes newsletter as lemmetry@GMAIL.COM. If you wish to change or remove your email address, please visit: http://www.about.com/nl/usgs.htm?nl=taxes&e=lemmetry@GMAIL.COM About respects your privacy. Our Privacy Policy. Our Contact Information. 249 West 17th Street New York, NY, 10011 © 2008 About, Inc.