strategies and tactics to avoid being taxed

        Paré also said most investors need not worry about paying the 20% tax on capital gains and dividends. But high income tax payers can use certain strategies and tactics to avoid being taxed at the highest rate. “In some regards it depends on the asset that they’re holding,” Paré said.

Owners of real estate, for instance, might consider a 1031 Exchange or “Like-kind” property exchange in order to defer capital gains. And owners of stock might consider offsetting their capital gains with capital losses.

“Taking some losses to offset the gains is always a very good idea,” said Foss. “(Some investors) tend to forget that they still have some (loss carry-overs) available to offset their gains. So, one good thing is to make sure that people are aware of what they have carrying over.”