When you are planning to liquidate appreciated assets such as stocks, think twice. Instead, give the actual stock asset to your child or other trusted family member who has a lower tax bracket. When that person sells the assets, he or she will pay taxes at the lower tax rate.

Another excellent method is to donate your appreciated assets to your favorite charitable organization. You are allowed to deduct the full value of the assets as a charitable contribution, and neither you nor the organization will pay any capital gains taxes on the assets.

It would be advisable to consult a tax professional for proper planning and documentation for some of the more complicated tax strategies, but using these strategies could save you thousands of dollars in taxes.

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