1. Write off losses incurred in sale of stocks
If you have lost money selling your stocks, you can use the losses to offset any capital gains tax that you may have made in the sale of other assets. This will reduce any capital gains tax you incur. Furthermore, if your losses from sale of stocks exceed your capital gains, then you can utilize as much as $3,000 of the losses after offsetting capital gains tax to offset other income. Also, any amount above $3,000 can be placed on future tax returns.
2. Write off property sale losses
If you have been forgiven of any debt, according to the Mortgage Forgiveness Debt Relief Act of 2007 you will have to pay tax on your forgiven debt. But to help people cope with the credit crisis, Congress allowed homeowners with mortgage debt forgiven in 2007, 2008 and 2009 to avoid this tax. So you can write off any losses incurred in property sales against this tax.
3. Write off expenses related to work
If you incur any expenses in the course of your work that is not reimbursed by your employer, you can deduct these expenses on your tax return if they exceed 2% of your income.
4. Write off equipment used in your business
As a business owner, you can write off the cost or depreciation of certain equipment bought for your business such as business furniture, machinery, office equipment and laptops.