BERKELEY HEIGHTS, N.J. (TheStreet) -- If you want to be proactive about managing your 2011 tax liability, now is the time.One of the items under every taxpayer's control is managing their realized capital gains and losses. The first thing to determine is what, if any, capital gains you have realized in your taxable accounts for 2011 -- either short term or long term, depending how long you have held the investment. (Investments that have a holding period of one year or less are considered short term.) Why should anyone care? Because short-term capital gains are taxed at ordinary income tax rates, meaning for a high-tax-bracket person that might mean paying taxes at a 35% federal marginal tax rate plus their marginal state income tax rate.
|If you've got short-term capital gains, consider tax loss harvesting.|
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