Remember that reinvested dividends increase your tax basis. When selling shares of stock that you purchased at different prices at different times, inform your broker beforehand that you are selling the shares with the highest basis. This will minimized taxable gain or maximize deductible loss. Donate appreciated property to charities to avoid capital gains tax. The amount of your deduction is the value of the property rather than its cost.
Special rules can apply.
Consider paying off your home mortgage if you're subject to the itemized deduction phase-out. Use your employer's flexible spending account or cafeteria plan. Tax Planning Tips For Business Consider whether your current form of business is still best for you. Avoid payroll taxes by shifting a portion of compensation from salary to fringe benefits. Unreimbursed medical expenses and payroll-deducted group insurance are ideal benefits to include in a Section 125 cafeteria plan.