Complete a Year-End Tax Review of Your Investments

As year-end approaches, take a closer look at your
investment portfolio. There may be some tax-saving
strategies worth considering.

For example -

* Wash sales. Thinking of selling a security before
December 31 to take advantage of a capital loss? To
make sure the loss is deductible, refrain from buying
a substantially identical security during the 61-day
period that begins 30 days before you sell and ends
30 days after.

* Worthless stocks. For capital loss purposes,
securities with no value are treated as if you sold
them on the last day of the year. Your loss is
generally the same as your cost.

If you want to deduct worthless securities on your
2011 return, you’ll need to prove the security became
worthless during the year and that it truly has no
value. Not sure you can meet those requirements?
Selling before year-end may be a better option.

* Stock donations. Giving appreciated stock to charity
lets you avoid capital gains tax and claim a
charitable deduction.

In order to deduct the donation on your 2011 return,
the gift must be complete. For certificates you
endorse and present directly, the date of mailing or
other delivery is considered the date of the gift.
When your broker or the issuing company handles the
transaction, the gift is complete when the stock is
titled to the charity.

Please call us for more guidance in your year-end tax
review.

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