A. This is the time of the year to consider taking some stock related moves to lower your 2016 tax bill.
First, harvest loss
If you have stocks or funds in a taxable account that are in a loss, you can sell them and use the losses to offset profits from your winning stocks and funds. These losses could also be used to offset any unexpected distributions from your mutual funds, as every December many funds will pay out dividends and capital gain distributions that they have built up during the year, even if you reinvest them in additional shares.
Second, sell winners
In 2016, if you are married filing jointly with taxable income of up to $75,300, you are eligible for 0% capital gain tax rate. This is probably especially applicable for recent retirees who live off cash reserves. However, make sure the gains don't push your taxable income to exceed $75,300.
Third, make gifts
If you don't qualify for the 0% capital gain tax, but maybe your adult child or an elderly parent does. If this is the case, you can gift the appreciated stocks to that person who could in turn sell the stocks and use the 0% tax rate. You can gift up to $14,000 to as many people as you wish without filing a gift-tax return.