WASHINGTON — Geoff Colvin with Fortune Magazine compiled a list of year-end tax tips.

Sell your high value stocks and investments

Selling your investment winners can carry big advantages, especially this year. If you’ve got any stocks that are up strongly, even if you want to continue holding them, it could be wise to sell them before year end and then buy them back immediately.

Here’s why: With all the talk in Washington about new taxes, the tax on long-term capital gains could be raised from its current low rate of 15 percent. By selling winners now, you pay only that 15 percent on your gains. Then buy your shares back. If you’re worried about the Wash Sale Rule, don’t be. It doesn’t apply here.

Now if tax rates rise, you’ll pay the higher rate only on your gain above today’s price. Your higher cost basis also means you could record a valuable tax loss if you eventually sell below today’s price.

Max out savings plans

The future of taxes is highly uncertain, but at least one strategy is still solid: Maxing out your savings plan.

No matter where tax rates go, current tax incentives for savings look safe, and no one should pass them up. So remember, contributions to your 401K are tax deferred. Anything you contribute by Dec. 31 will reduce your 2011 tax bill. The maximum contribution this year is $16,500, or $22,000 if your age 50 or older.

If you’ve got any self-employment income, then set up a set up a SEP-IRA, a SIMPLE IRA or other qualified saving plan. You have to do it by Dec. 31, but you can put off your contribution until the due date of your tax return. The maximum contribution is 100 percent of your self-employment compensation or $49,000 — whichever is less. No big rush if you have a tax-deductable IRA, you have until April 17 to make your contribution.

Energy tax expires

All good things must come to an end, including the home energy tax credit.

The credit expires Dec. 31. If you buy energy efficient windows, doors, skylights or heating and air conditioning systems, you can take 10 percent of the cost as a tax credit up to $500 dollars, though only $200 of that can be for windows.

You have to move fast. You have to install your upgrades by year end and they must be for your principal residence.

A bigger credit for renewable energy equipment runs through 2016. If you buy geo-thermal heat pumps, solar panels or wind generators, you can take 30 percent of the cost as a tax credit with no limit. That applies to new homes as well as existing homes and to second homes as well as principal ones. And remember, this is a tax credit, you deduct the amount directly from the taxes you’d otherwise pay.

Donate your car to charity

At this time of year, many charities are asking you to donate your car or truck to them — just make sure you know the rules.

First, make sure the charity really is a charity. If you have any doubts, check the IRS website, IRS.gov. Assuming it checks out, be sure to file a form with your state DMV saying you’ve donated your vehicle so you’re clear of any possible liability afterwards.

Then the big question, how much can you deduct on your tax return? Most charities immediately sell donated vehicles, in which case they must tell you how much they got and that’s your deduction. If they don’t intend to sell it, they must give you a statement to that effect and you may deduct the vehicle’s market value. For a helpful guide to the whole process, go to IRS.gov.

Uncertain future for some tax breaks

Some important tax breaks face an uncertain future in Washington.

The tax deduction for mortgage interest used to be phased out for people with high incomes. That phase-out was eliminated last year as part of the effort to stimulate the economy so right now, everyone gets to deduct mortgage interest fully. But with tax policy a high priority in Washington, there’s talk of bringing those restrictions back, reducing the tax advantages of a mortgage for some people.

Certain tax reform proposals would even eliminate the mortgage interest deduction entirely.

Another endangered rule lets you deduct sales taxes rather than state and local income taxes, if you prefer. That rule expires at year end. Congress could reinstate it, but who knows? If you’re thinking of making a big ticket taxable purchase like a car or a boat, see if now is the best time tax-wise.

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