Its that time of the year! You’re probably looking forward to large plates at Thanksgiving or plenty of presents under the Christmas tree come December 25th. I was thinking more so along the lines of taxes. All year long you have been buying and selling stocks in your non-retirement account. Sometime we get ahead of ourselves when we are experiencing a period of sustained gains and we sell out of those stocks to lock the gains in. When you do this, you incur capital gains which are taxed based on your tax bracket. What some people may not know is that you can also report losses you have incurred to offset some of your ordinary income (salary, wages, tips, etc) or other investment gains you have incurred. Losses occur when you sell a stock or security for less than you initially paid for it. The IRS rules state only $3,000 can be declared on your tax return to reduce your taxable income. The good thing is that if you have greater than $3,000 in capital losses, it can be carried forward and used in future tax years to lower taxable income at that time. Please consult a tax advisor if you are looking to implement this strategy.