3. Hold off on selling.
Consider a low-turnover strategy to defer capital gain income. The difference between short-term capital gains versus long-term capital gains is sharp: In the top bracket, short-term capital gains are taxable at 39.6% — the same rate as ordinary income. In comparison, long-term capital gains at the top rate face a 20% levy.
“This is holding off on selling as long as you can,” Mr. Keebler said. “It’s all about smoothing out income.”