It's that time of year.

Corporate accountants are hustling to size up annual earnings; retailers are rushing to purge their inventories and consumers are scurrying out to buy last-minute gifts. All around the world, untidy financial houses are being put in order, so I, too, am making a list and checking it twice:

Charitable Giving

To me, it's deeply satisfying to be able to share success in the stock market with a deserving charity. And the tax code boosts the rewards by allowing you to deduct the full appreciated value of the contribution without ever paying tax on the gain. This year, the holidays coincide with the recent arrival of a Common Sense selling target. I sold my shares in Chipotle Mexican Grill (CMG) after they more than doubled. I wish I'd given them away; they would have been an ideal candidate for the charitable deduction. To make the most of this opportunity, you want to give stocks with the biggest gains. Fortunately I have plenty of other candidates in my portfolio. I counted thirteen positions that have more than doubled -- including Apple (AAPL), Amazon (AMZN), Ford (F), Under Armour (UA), and Salesforce.com (CRM), all recommended in this column.

Tax-Loss Selling

Every investor should consider selling losing investments before the end of the year because individuals can deduct $3000 against ordinary income and an unlimited amount against gains. This year, I had the foresight to do this in late October, thereby beating the Christmas rush. As I said then, there's no rule that says you can only realize losses in December.

I failed to consider that the market might rally as strongly as it did in November and December. I sold Whirlpool (WHR) at a loss, in part because I had recommended it based on an expectation of rising interest rates, and interest rates fell. Talk about humbling: Interest rates immediately started rising, and Whirlpool jumped. Shares were at $76 when I sold; this week the stock traded at $90. Had I held on, I wouldn't have had a loss to realize.

Fortunately I didn't sell my other losing position, United Therapeutics (UTHR) . It jumped from $55 in October to nearly $65 in mid-December, and I no longer have a loss. I'll be re-thinking my strategy of early tax-loss selling next year. But if you still have unrealized losses for 2010, consider taking them now.

Portfolio Rebalancing

Both giving shares away and engaging in tax-loss selling reduce the percentage of your assets in stocks, which may call for some additional rebalancing to bring your overall asset allocation into line with targets. Even if you aren't selling or giving anything, the end of the year is as good a time as any to rebalance. I find that many people (including myself) pay lip service to rebalancing, but then don't actually get around to doing it. It's an excellent discipline that forces investors to sell assets that have gained in value and buy those that have lost, which is to say, buy lower and sell higher the fundamental goal of this column. Year-to-date, the S&P 500 has gained 13%; the yield on the ten-year Treasury has fallen by just as much. So to maintain a constant ratio, investors need to sell (or donate) stocks and buy bonds.

If my experience is any indication, this exercise will generate even more holiday cheer. 2010 has been a very good year for investors and the Common Sense system. I'll offer a fuller accounting when I return in January. In the meantime, my best wishes for a warm, healthy, happy and satisfying holiday season.