Complex sentence: In taxation in the United States, capital gains are subject to capital gains tax, but if a taxpayer has suffered from capital losses in the same year, he can offset the gains with the losses to reduce his taxable income.
Split into simpler sentences: In taxation in the United States, capital gains are subject to capital gains tax. If a taxpayer has incurred capital losses in the same year as he has realized capital gains, he can offset the gains against the losses to reduce his taxable income.