• Time your investments. Many funds pay out capital gains once per year, often in November or December. By investing in an attractive fund after its distribution is made, you can avoid the short-term gains that are most heavily taxed.
• If you’re already invested in a fund that looks set to pay a big dividend, and you have losses in your portfolio from this or previous years, you can sell your position before the fund’s distribution and use your losses to offset the gain. If you wish, you can reinvest the same amount in the fund after the minimum period required by wash sale rules elapses.
• Make a charitable donation of fund shares set to receive large distributions. As long as the transfer takes place before the record date, when the fund determines who will receive distributions, you should not be taxed on the appreciated security you donate.

• Expenses incurred while performing charitable service, including supplies purchased and vehicle-related expenses like mileage, are deductible.
• The value of your time spent doing charitable work cannot be deducted for tax purposes.

Pay attention to health care costs.
If you’re insured, it can be very difficult to reach the minimum percentage (currently 7.5%) of Adjusted Gross Income required to claim medical expenses, but there are frequently overlooked medical costs that qualify toward that cutoff, including:

• Travel to and from medical treatments
• Insurance premiums paid from taxable income
• Uninsured medical treatments

Capitalize on a job change.
Amid unprecedented economic turmoil, many investors found themselves looking for a new job in 2009. What many do not realize is that the expenses associated with this process may be deductible.

• Fees for resume preparation or outplacement agencies are deductible for those seeking a job within their current occupation.
• These costs and other miscellaneous itemized expenses must exceed 2 percent of your Adjusted Gross Income to impact your tax liability. Also, these expenses are not deductible under the AMT.

The above referenced strategies are just a few of those you may want to pursue, and most require action before December 31. We recommend that you contact your Financial Advisor and tax professional now to learn more about how to make your investment portfolio more tax-efficient for year end and the future.