10 Ways to Cut Your 2008 Tax Bill

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5. Take Your Losses You probably know that investment losses in taxable accounts can be used to offset capital gains, but what if you have no gains? Use the losses to offset up to $3,000 in income. A $1,000 loss that offset $1,000 in capital gains will save you $150 at the 15% capital gains rate. But that same $1,000 can save you $350 if you're in the 35% tax bracket and offset $1,000 in income. "It's actually better to take losses in a year when you have little or no gains,"says Stuart Ritter, a CFP with T. Rowe Price Group.

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