Stock Losses Equal Deductions

— -- It may be time to re-coup those old investment losses.

If you lost money in recent years when the market hit the skids there is a way to get some of the cash back.

Investors who took a capital loss, meaning you sold the stock for less than you paid for it, you might be able to get some of the sum back on this year's tax return.

"If your capital losses exceed your gains then you can take up to $3,000 of the net capital loss and subtract that from your other income," explained Don Roberts of the Internal Revenue Service.

"But if your loss was more than $3,000, then the excess gets carried over to the next year," said Roberts. "The next year, you first subtract the carry-over losses from whatever gains you have that year."

For example, if you lost $20,000 two years ago when your dot.com went broke you should have taken $3,000 of that off your 2002 income, leaving $17,000 in carry-over losses.

If you sold stock last year and made $10,000 — that profit becomes tax-free — and you would still have $7,000 in carryover losses for future write-offs.

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