Can retail investors avoid capital gains taxes?

Folks may be wondering how to avoid capital gains taxes altogether. The short answer is that you likely can't. Indeed, the vast majority of retail investors are unable to sidestep the tax man completely. However, with a few subtle but important changes to your investing strategy, you may be able to reap significant tax deductions.

How do I avoid capital gains tax?

A portion of the gain can be excluded because you lived in it for at least two years. Gift Properties A great way to avoid capital gains tax and also make an impact is to donate a property that has increased in value. This allows you to permanently avoid paying tax on the growth.

Can you avoid capital gains tax if you sell shares?

By handpicking the individual shares, you may be able to avoid capital gains taxes by selling shares that are at a loss (or at least have lower gains), even if your overall position in that investment has made money. 4. Lower Your Tax Bracket When you have less taxable income, you may qualify for 0% tax rates on long-term capital gains.