Can my husband and I write off $6,000 of stock losses each year if we file a joint return?

Can my husband and I write off $6,000 of stock losses each year if we file a joint return? And, if so, does the stock have to be owned in individual names rather than jointly?

It doesn't matter how you own the stock. Couples who file jointly are stuck with the same $3,000 limit that applies to single people. Filing separate returns won't increase your deduction, either. If you're married filing separately, you can deduct only $1,500 of capital losses from income. Plus, filing separately comes with a number of other pitfalls for couples.

Capital losses must be deducted dollar for dollar against any amount of capital gains first; then, up to $3,000 a year can be used to offset other kinds of income, such as salary or interest income. But if your net losses exceed $3,000, you can carry the balance into future tax years. And don't forget to include any extra losses you had left over from one year when calculating your taxes for the following year.