8 Opportunities To Save Tax Before It's Too Late
1. Harvesting capital gains. Year-end tax planning typically focuses on "harvesting" capital losses by selling stocks or other securities. Losses realized on those sales may offset capital gains and other income.
But your situation may call for a different strategy. If you harvest long-term capital gains, you'll generally pay a maximum tax rate of only 15%, compared with much higher tax rates on ordinary income. (If you're in the top tax bracket for ordinary income, the maximum long-term capital gain rate is 20%.)
2. Putting more in your retirement plan. Virtually everyone can benefit from a boost to retirement plan accounts. Typically, you might participate in a 401(k) or another plan at work and supplement it with savings in IRAs.
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