5. Take advantage of the 0% capital gains rate. Yes, it’s possible to sell securities at a gain and pay zero tax on the sale. While this rate is not available to the majority of taxpayers, there are circumstances when you can take advantage of it. Situations that might allow this opportunity include years where one is out of work or retirement years when income is low, perhaps before Social Security payments and IRA required minimum distributions begin. And regular deductions such as medical expenses, real estate taxes, and charitable contributions still exist. Of course, this short list is not intended to be a personal recommendation. Instead, it’s short guide to help you brainstorm possible options.
Michael Steiner, CFP, CPA, is a partner and wealth advisor at RegentAtlantic Capital, based in Morristown, N.J.