Avoiding capital gains tax isn't impossible, but it does require some tax know-how. Several tax clauses enable you to avoid capital gains tax. Carry over capital gains losses to avoid capital gains tax.
One of the easiest methods for avoiding capital gains tax is to carry over capital losses. When investment performance is down across the board, it's not uncommon to incur capital losses. You can deduct a maximum of $3,000 in capital losses, or $1,500 for married persons filing separately, but the tax code does permit you to carry over capital losses in excess of $3,000. This means that, if you have a bad year with high capital losses, but the next year includes capital gains, you may be able to carry over enough capital losses to offset the capital gains on which you'd normally have to pay taxes.