Capital gains and losses are monetary amounts that result from the sale or exchange of a capital asset. Generally, for individuals in tax brackets of 28 percent or less, capital gains are taxed like regular income. Be sure to pay close attention to the different reporting rules for investment, business, and personal property when preparing this part of your return. Take note that short- and long-term gains are not treated equally, and that if you only have capital gain distributions to claim, you can now report the income directly on Form 1040 Schedule D. Individuals with capital losses can deduct up to $3,000, and $1,500 if you are married filing separately. Any losses on assets used for personal reasons can't be deducted. The tax rules surrounding capital gains and losses tend to be quite complicated. As a result, it's recommended that you refer to the tax code for details concerning this area. For more information on reporting capital gains and losses, consult a tax advisor or call the toll-free number for Federal Tax Information and Assistance at 1-800-829-1040.