Tax planning should be a year round activity, but deserves special attention as the end of the year approaches.   While everyone's tax situation is different and there is no substitution for qualified tax advice, here are some ideas you should be sure to consider: 

Personal tax issues 

Delay taxation where appropriate.  The 2003 Tax Act accelerated the tax rate reductions that started with the 2001 Tax Act.  As the law currently stands, rates will remain constant for the next several years.  Therefore, delaying the taxation of your income will not subject it to tax at lower rates.  It will however, allow you to earn more on the money until you finally must pay the tax. 

Review your capital gains and losses.  Be sure to examine your transactions for this year to see if you have any net gains.  If you do, consider selling some losing positions to offset them.  In addition, you are allowed to use up to $3000 of net capital losses to reduce your taxable income.  Unused realized losses can be carried forward. 

Review your charitable contributions.  If year-end charitable contributions are in your plans, consider contributing appreciated stock instead of cash.  You get the deduction for the fair market value and avoid paying tax on the gain. 

Contribute to your retirement plan.  The 2001 Tax Act raised the contribution limits for many types of retirement plans.  Individuals aged 50 and over can even make "catch-up" contributions to IRAs and 401(k) plans.  Be sure to take as much advantage as you can to secure your retirement years.

Beware of the Alternative Minimum Tax.  Originally enacted to force high-income taxpayers to pay tax, this complicated "additional" tax is catching many people unaware.  If your income is relatively high (say $125,000 or above) or if you have high levels of itemized deductions (especially income or property taxes), you may want to consult a tax advisor.  The AMT can also apply to individuals with incentive stock options. 

Business tax issues 

Qualified retirement plans.  Be sure to get the maximum tax benefits from any retirement plan where you are a participant.  Consider making contributions to an IRA, even if the contribution will not be deductible.  Getting funds into an IRA where the earnings are tax deferred will save you money. 

Control your wages.  Many business owners are able to control when they pay themselves, especially year-end bonuses.  Be sure to understand the "inter-play" between your business's and your personal tax situation to get the bests solution.