Year-end sales of securities.

Review your paper and actualized gains and losses for the year as well as any capital loss carryover from last year. As long as you sell by the end of the year, any resulting gain or loss will be reported this year even though the settlement date is not until next year. Best strategy: Upgrade your portfolio by taking enough losses to create a tax edge—you can deduct capital losses in excess of capital gains against your salary and other ordinary income up to $3,000 each year, with excess losses carried forward indefinitely. Use the proceeds to buy better securities that can meet your investment objectives.