With all the new phase outs, floors, deductions, credits, exemptions, and exclusions in the federal tax code, here’s some tips to help you through the 2000 tax year.

FOR INDIVIDUAL TAXPAYERS

* If you are supporting a family member, they may be considered your dependent, even if they don’t live with you., check to see if you can claim an exemption.

* If you run your own business, consider hiring your child for after school or vacation work. The wages you pay for bona fide work should be tax deductible.

* Points paid on a home mortgage are usually deductible as interest. Also, when you sell your home and pay off the mortgage, you can write off all points you haven’t yet deducted.

FOR BUSINESS TAXPAYERS

* Combining a profit-sharing plan with a money purchase plan may be beneficial. This could allow larger contributions to be made on behalf of owners and other key employees.

* If you plan to buy or construct new business offices, pay close attention to how costs are classified. Personal property can usually be written off much faster than commercial buildings and their structural components.

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