Turn Market Losses Into Tax Savings

Sell stocks that are worth a lot less now than what you paid for them to offset taxable gains or income.

So far this year, the stock market has shed over $8 trillion in value. Taxpayers know that when we make profits in the market, we have to share those gains with Uncle Sam. It's only logical, then, that the silver lining to the 2008 market meltdown must be huge tax savings. Imagine if all those losses showed up on tax returns next April. Investors would save hundreds of billions of dollars in taxes.

But that's not going to happen.

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Kevin McCormally
Chief Content Officer, Kiplinger Washington Editors
McCormally retired in 2018 after more than 40 years at Kiplinger. He joined Kiplinger in 1977 as a reporter specializing in taxes, retirement, credit and other personal finance issues. He is the author and editor of many books, helped develop and improve popular tax-preparation software programs, and has written and appeared in several educational videos. In 2005, he was named Editorial Director of The Kiplinger Washington Editors, responsible for overseeing all of our publications and Web site. At the time, Editor in Chief Knight Kiplinger called McCormally "the watchdog of editorial quality, integrity and fairness in all that we do." In 2015, Kevin was named Chief Content Officer and Senior Vice President.