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9. Reduce your taxable income

You can legally reduce your taxable income to bring down your marginal tax rate. This can be done by taking full advantage of the allowed deductions and credits before filing your tax return -- for instance, donations to charities and expensive medical procedures. You can also increase your contribution towards an IRA to the maximum allowable amount. These measures will ensure that any capital gain realized will be taxed at the lower marginal tax rate.

taxable income capital gains tax

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