Under the new rules, Ford's charges against income will rise considerably.

It is an offset against income, before calculation of tax.

Net losses in a tax year may be carried forward, but not offset against income.

"You filed a capital loss against ordinary income," he said.

In addition, $3,000 of the losses can be taken against ordinary income.

In effect, the Circle has been borrowing from itself against anticipated income.

If so, you may be able to deduct the entire loss against ordinary income in one year.

Net capital losses of up to $3,000 can be taken against ordinary income.

Throughout the 1980's, companies were able to borrow ever greater amounts against future income.

Rising costs against lowered income and the more one rose, the lower the other fell.