<topic sku="dlxbiz" tNum="289606" author="erinpa" xmlns="x-schema:hhTopicSchema.xml"><index><title>Learn about experimenting with offsetting capital gains and capital losses</title><category>investing</category><klink type="cncpt">Tell me about experimenting with offsetting capital gains and capital losses</klink></index>
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<p>If you have a capital loss from the sale of an investment, you can deduct the loss<mdash/>up to a specific amount, which can vary<mdash/>against your ordinary income (such as wages). However, there is no limit on the amount of capital loss you can deduct from your capital gains. If you have taxable capital gains, you may want to consider selling other investments that are currently worth less than you paid for them so you can offset some or all of your capital gains with a capital loss.</p>
<p>You can use the Capital Gains Estimator to see how different investment sales may affect your tax liability. On the <emph>Estimate capital gains and taxes</emph> page, try entering proposed sales of stocks that would result in a loss. You can experiment with sales that result in gains or losses, and see the <emph>Results of proposed sales</emph> at the bottom of the page. <alink type="prcdr" href="usecapitalgains.xml"/></p>
<p variant="note">For even more powerful capital gains estimation tools, import your Microsoft Money investment information file to GainsKeeper. GainsKeeper makes it simple for you to use your Money file to complete your IRS Schedule D, and offers precise capital gains calculations that automatically adjust for wash sales, stock splits, and mergers and spin-offs. Plus, you'll have access to tools and suggestions that could help save money on your taxes. All Microsoft Money users receive a free 30-day trial for GainsKeeper and discounts on an annual subscription. Money Premium and Money Small Business users get a whole year free!</p>
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<tease>Learn more about GainsKeeper</tease>
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<li>On the <emph>Investing</emph> menu, click <emph>Portfolio</emph>.</li>
<li>In the left pane on the <emph>Other Tasks</emph> list, click <emph>Capital gains tracking for Schedule D</emph>.</li>
