Stocks are down big this year. Here's how you can use losses to your advantage -- and other strategies to keep in mind -- to pay as little tax as possible next year.

Contributing sentiments towards policy:

48% : In this strategy -- which may be especially relevant this year with the S&P 500 down 19% since January -- an investor sells stocks that are held in a brokerage account (not a retirement account like a Roth IRA) at a loss in order to offset taxes that would have to be paid on capital gains made from other positions.
45% : He continued: "This creates quite a paradox for investors holding these funds because they end up paying tax on gains from the fund in a year when the share price is down.
43% : "You're capitalizing on some of the gains but you won't need to pay taxes on it because you can offset it against the loss," Taylor said.
42% : Mutual fund distributions from closed positive positions within the fund earlier in the year could also be a source of gains investors will have to pay taxes on, even if the mutual fund is down on the year, McKeown said.

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