And some companies with financial problems have tax losses available to offset future income.

The tax losses could be used to offset ordinary income.

The losses on the first transaction are used to offset income.

Beginning in 1987, every dollar of any capital loss can offset ordinary income up to the $3,000 limit.

If there were never any capital gains, over eight years the entire loss could offset income of $24,000.

What's more, if they have a net capital loss of up to $3,000, it can offset ordinary income.

The sale could mean the opportunity to use that $11,000 to further offset ordinary income for the current year - with certain exceptions.

It said these will be available to offset future taxable income.

Under the law, the cost of these failures can only offset income earned from the successful ventures.

Up to $3,000 of investment losses can be used to offset ordinary income if someone does not have capital gains.