TAX PLANNING

            Back in 1947, tax planning was something that concerned only the wealthy. That year, taxpayers received often-quoted words of encouragement from Judge Hand: "Over and over again courts have said that there is nothing sinister in so arranging one's affairs as to keep taxes as low as possible. Everybody does so, rich and poor; and all do right, for nobody owes any public duty to pay more than the law demands; taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant."

            Nowadays, financial planning throughout the year, with an eye particularly on taxes, is not just for the wealthy. Advance planning is also rewarding for most middle income individuals.

            TIP. Spend a few hours plotting how to choose and implement your year-end strategies, and you may be pleasantly surprised to discover how many IRS-blessed opportunities there are to save on your taxes for this year and even gain a head start on next year. For example, it may be advantageous to buy computer supplies, printer ink or darkroom supplies in advance to reduce your net profit for this year. The main thing is to act before December 31 while there is still time to take advantage of tax angles that can generate a dramatic savings if you understand how to get the full benefit of what the law allows. Once beyond December 31, it is too late to do anything but fill out your tax forms, except for a possible contribution to a traditional IRA or a Keogh.