Sell enough losing investments to fully offset the gains from the winners.
Specific Details
The parents reduced their taxable income by $5,000 by selling losing investments to offset the gains from the winners. Since the parents income was taxed at the 20% tax bracket, the income reduction may decrease their income taxes by $1,000 ($5,000 x 20%).
Potential Savings
If you are in a combined (federal, self-employment, and state) tax bracket of 20%, you could reduce your taxes up to $200 for every $1,000 of income reduction by selling losing investments to offset the gains from the winners.