...liability. How can I reduce the tax due? My wife and I have combined taxable income of about $60,000. We have two children, and mortgage deduction. We sold stocks as part of a major renovation of our home. We have capital gains (mostly short term) of about $52,000. A quick run through with Turbo Tax has me owing nearly $20,000 in Federal tax. How can I reduce this, legally?

Nothing, I'm afraid. After the fact or post mortem planning is rarely effective. Shoulda held the stock a year and a day--woulda saved you $12,500.

You really need to scrutinize your deductions and make sure you are taking advantage of everything possible. Review schedule A for anything/everything you can (medical, charity, unreimbursed employee expenses).















Unfortunately, with short-term gains you will pay more to Uncle Sam.