Time capital gains and losses.

Waiting to sell an asset may allow the gain to be treated as long-term, which is subject to lower tax rates. Recognizing some losses when you have already realized capital gains lets you offset them. Or, if you have already recognized a capital loss, you may want to recognize enough capital gain to absorb the loss before year-end. You can deduct passive losses only against passive gains. Other considerations include bond swaps, selling worthless securities, writing off bad debts and investing in qualified small businesses. Keep in mind, however, that tax considerations should not drive your investment decisions.

Consider installment sales or like-kind exchanges to defer capital gains.

With an installment sale, you spread the gain over several years and may be ale to reduce your overall tax burden. With a like-kind exchange, you may be able to defer gain until you sell the newly acquired property.