Don't Jump Gun On Tax Loss Sales, CPAs Say Plot your strategy now, but wait for the market to tell you what to do.(MAKING MONEY IN MUTUALS)(INVESTMENT TRENDS)

Byline: Claire Mencke

As stock markets continue to sag, investors' thoughts already are turning to something they usually deal with closer to year-end. That's tax-loss selling from their portfolios.

It makes sense to try to get an early fix on your gains and losses for the year, accountants say. But it's probably too early to do anything to change the tax consequences.

Why? "People are probably starting to talk about it because they're afraid if there's too much year-end selling, it will depress stock prices even more," said Lawrence Torella. He's a certified public accountant at Richard A. Eisner & Co.

"But it's getting ahead of yourself to do it now," he said.

Most folks who realize losses on sales of some assets to offset gains from sales of others try to be guided more by investment conditions than by taxes, Torella says. And no one really knows what the market climate will be between now and year-end.

Earlier Look?