Strategies for Avoiding Capital Gains Taxes

The new 20% capital gains tax rate went into effectJanuary 1 with top income earners tacking on another 3.8%.  Here are nine strategies to bypass or lessen capitalgains taxes:

1. Invest in your primary residence to exclude up to $250,000 ($500,000 ifmarried) of gain.
2. Manage your tax bracket by keeping your taxable income down.
3. Consider harvesting your losses by selling losers in your portfolio.
4. Make exclusion gifts to family members up to $14,000.
5. Give appreciated stock to charities.
6. Feed money into a Roth.
7. Open a 529 college savings account for your children when they areyoung.
8. Buy stock and hold onto it for your heirs.
9. Move to a state with friendlier taxes.

See Ashlea Ebeling, How to Beat theBig 2013 Capital Gains Tax Hike, Forbes, Sept. 13, 2013.