Lessening the Tax Bite
Check Your Funds
Call now for estimates of short- and long-term capital gains and record dates for the distribution.
Keep a Fund or Dump It?
If a fund is worth less than you paid for it, sell before the distribution. If it's up only slightly, compare the tax on the distribution with the tax on profits when you sell. Ask yourself: ''Is this a position I want for the long term?''
Avoid a Tax Bill
Don't invest in a fund until after it has made its yearend distribution.
Match up Winners and Losers
If you have big capital losses, use them to shelter capital gains and up to $3,000 in ordinary income. Look for short-term winners owned less than 12 months to cash in.
Sell the Right Lots
Instruct your broker or fund company to sell the most costly shares to minimize your capital gains.
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