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ACT NOW, SAVE LATER: PRICE WATERHOUSE OFFERS LAST-MINUTE YEAR-END TAX PLANNING TIPS TO SAVE 1992 TAX DOLLARS

 NEW YORK, Dec. 29 /PRNewswire/ -- As the end of the year approaches, taxpayers still have time to take advantage of tax planning strategies to minimize 1992 tax bills. There are several last-minute opportunities to save taxes, if the right tax planning methods are used. According to Price Waterhouse, some tax savings tips to act on before Dec. 31, 1992 include:
 -- Self-employed individuals should set up a Keogh plan for self- employment earnings by December 31. Generally, you do not have to make your actual contribution until the due date of your tax return (including extensions), but if you make contributions for 1992 now, your tax-deferred investments will start growing sooner.
 -- Make sure to use your $10,000 annual gift tax exclusion. Support items including tuition and medical expenses don't count towards your annual gift tax exclusion amount.
 -- Strategies for potential increase in tax rates.
 If you believe tax rates will increase or if you expect to fall into higher tax bracket, consider accelerating income and deferring deductions by the end of the year. Accelerating income to a year with a lower tax rate may result in tax savings. Deferring deductions to a later year may result in a greater tax benefit because it reduces income that would be taxed at a higher rate.
 You can accelerate income to 1992 by:
 - Accelerating the sale or closing of the sale of capital gain property.
 - Accelerating the sale of shares with the lowest basis (cost) first, deferring the sale of the shares with the higher basis (and thus with the lower gains) until later years.
 - Selling Treasury bills or CDs with maturities of less than one year (or have interest credited) that would otherwise mature in 1993.
 - Buying shares in a company or mutual fund prior to a regular dividend distribution.
 - Persuading your employer to pay your 1993 bonus (or other compensation) to you in 1992.
 You can defer deductions until January 1993 by delaying the payment of:
 - Fourth quarter state and local estimated income taxes (typically due January 15.)
 - Real estate and property taxes.
 - A mortgage installment due Jan. 1, 1993 which includes December 1992 interest.
 - Medical expenses, business expenses, charitable contributions, moving expenses and the like if such deductions would otherwise be available in 1993.
 -- Strategies for no increase in tax rates.
 If you believe tax rates will not increase or if you expect to fall into a lower tax bracket, consider deferring income to delay the payment of taxes. You can also accelerate deductions to reduce taxes for the current year.
 You can postpone income by:
 - Buying Treasury bills or investing in CDs with maturities of one year or less with no interest credited until 1993.
 - Deferring until 1993 the sale or closing of the sale of capital gain property.
 - Deferring receipt of year-end bonuses or other compensation until 1993 (but carefully consider the constructive receipt rules).
 You can accelerate deductions to this year by paying the following by December 31:
 - Fourth quarter state and local 1992 estimated income tax payments due Jan. 15, 1993.
 - Real estate and property taxes due in January 1993 if state and local laws allow.
 - Mortgage payment due Jan. 1, 1993 to deduct interest attributable to December.
 - Charitable contributions and other deductible items.
 - Deductible expenses paid with a credit card before the year end will secure a 1992 tax deduction even though you do not pay the credit card charges until 1993.
 Price Waterhouse is a leading worldwide professional services organization of business advisers, accountants, and tax and management consultants. Through a global network of firms practicing in 453 offices in 113 countries and territories, Price Waterhouse professionals provide advisory services to businesses, individuals, nonprofit organizations, and government entities. The U.S. firm, with 12,480 men and women in 109 U.S. offices, is part of the worldwide network.
 -0- 12/29/92
 /CONTACT: Ellen Ringel of Price Waterhouse, 212-819-5021/


CO: Price Waterhouse ST: New York IN: FIN SU:

KD-TM -- NY039 -- 0453 12/29/92 18:17 EST
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Date:Dec 29, 1992
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