Clients who want to reduce certain positions should first consider selling from their at-work retirement plans. Those sales won’t incur any taxes, nor incur significant fees or commissions.

In nonqualified accounts, if the clients sell a position at a loss, verify that they haven’t bought the same shares for at least thirty days before or after the sale. Otherwise, the IRS “wash sale” rules could negate any tax deduction from the loss.

Last but certainly not least, when selling profitable positions in a taxable account, you and your clients should pay attention to the purchase date of those investments. If possible, wait until the holding period has reached at least one year so the profits will qualify for the lower tax rate on long-term capital gains—currently 15 percent for most earners and 20 percent for high earners. Otherwise, gains are taxed at personal income rates.

Benevolent clients who want to help out younger family members should consider eschewing cash, and instead “gift” shares of appreciated stock held in nonqualified accounts. If the recipient is in a lower-income tax bracket, he may be able to sell the shares and qualify for the zero-percent federal tax rate on long-term capital gains.