Currently both capital gains and dividends are taxed at a top rate of 15 percent. Some of today's sell-off could be prompted by people wanting to lock in low tax rates on gains before they expire at the end of the year. You'll need to get a sense of whether you'd be hit by the AMT under current law. You just have to plan ahead for what that strategy should be under the extended/not extended alternatives.
That means you don't have to jump now to implement your year-end tax and investment strategy. If Washington does anything to extend important tax breaks that expired at the end of 2011, like the alternative minimum tax patch, it is likely to finish that work the week before Christmas.
Make an appointment with your broker and your tax adviser for the week between Christmas and the new year don't let them take vacation. Here is what you can expect now, and what you can do about it.
