is now 
It’s hard to plan for income taxes with the outcome of the presidential election still undetermined. Whether the Democrats remain in office or Gov. Romney wins the election determines how many Americans will be taxed and also if tax credits that will or will not expire by the end of the year.
According to Tom Herman in his Wall Street Journal article, Tax Tips for the Next Two Months, the best strategy may be simply to procrastinate.
Here are 6 more ideas to consider.
1. Tax-loss harvesting. If you own stocks or securities that are worth less than your costs, consider using the capital losses to offset capital gains.
2. Don’t be penalized for wash-sale rules. If you sell a stock at a loss, be careful not to buy the same stock within the wash-sale period (usually 31 days or more). See Internal Revenue Service Publication 550 or seek advice from your CPA.
3. Consider donating highly appreciated stock to charity. Rather than selling and donating the proceeds, think about donating stock that you have owned for more than a year and that has risen in value. You may have no taxable gain on the appreciation while you may claim the entire value as a charitable contribution.
4. Watch mutual fund purchases now. Many funds distribute capital gains to shareholders late in the year, especially December. Sometimes it can pay to delay investing in a fund until after the date on which investors qualify for distribution.
5. Consider bunching deductions. You might consider combining charitable donations and deductions into a year when they will be worth the most to you.
6. Cash in on long-term winners. Upper-income investors could benefit from divesting big investment winners before December 31 to take advantage of this year’s unusually low capital-gains tax rates. Consult your CPA.
