• Take advantage of the $19,000 expensing option.

If you were planing to buy equipment for your business soon anyway, you may want to consider buying it before January. Buying your purchase in 1999 may allow you to expense $19,000 of your purchase price (subject to certain limitations).

• Wait until 2000 to buy a "luxury" vehicle.

If you purchase a vehicle in 1999 you will pay 6% on amounts over $36,000. However, the luxury tax on automobiles will drop next year to 5% on amounts above $38,000.

• If estate planning is part of your annual gifting, do it now.

Be sure you make your 1999 gifts before December 31 if you haven’t already made them. You are allowed to give away up to $10,000 per recipient in 1999 and 2000 without incurring gift tax.

• Don’t forget, this is your last chance for five-year averaging.

The final date for using five-year averaging to reduce taxes on lump-sum distributions from qualified retirement plans is December 31, 1999. Not everyone is eligible for this tax break, but those who are must act fast to take advantage of this tax-cutter.

If you haven’t yet taken a good look at your 1999 tax situation, you should seek the advice of a certified public accountant who could help you find the best tax saving strategies still available to you.

Source: James Ellis, CPA, Principal-Ellis and Associates CPAs, PA