Youris under a cloud. The prospect of major tax reform makes it difficult to develop a plan that won’t unravel if Congress enacts significant new legislation before the end of the year. Nevertheless, you can make the best of a bad situation: Implement those tax strategies that appear to be safe and sound for now. When it is appropriate, individual taxpayers can shift income and expenses at year-end. Here are 10 top tax-cutters for 2011.
1. Time securities sales for taxes. If your losses exceed your gains, you can use the excess to offset up to $3,000 of ordinary income in 2011. Any remainder is carried over to 2012.
Strategy: As long as it makes financial sense, harvest losses at year-end to cancel out earlier capital gains. Conversely, if you’re showing a net loss for the year, take down capital gains before year-end and use the earlier losses to shelter the gains.
Tip: To qualify for long-term ca...(register to read more)