With luck, 2008 will be a year remembered as one of the most trying economic periods of our generation. I say "with luck" because I hope that 2009 will be remembered as the year of transition and recovery. At this point, there appears to be no guarantee of that.

In the silver lining department, we are helping our clients get back well over $100,000 of income taxes they paid in 2005, 2006 and 2007 on capital gains. You still have a chance to recognize net capital losses in 2008 that you can use to carry back to offset gains on which you paid tax over the last three years.

Selling stocks, mutual funds, preferred shares or other investments that are now valued at less than you paid for them will crystallize the loss for tax purposes. If your total realized capital losses in 2008 exceed total gains, then you have net losses that can carry forward indefinitely, or back up to three years.