As we approach the year's end, consider the following ideas that can save you income taxes for 2008 and future years. In addition to saving income taxes, make sure any strategy you use makes economic sense and helps you achieve your long-term financial goals.

Generally, you want to review your tax situation for at least two years at a time to reduce your total tax liability for both years combined, not just for 2008.

Timing of income and deductions - Normally, taxpayers attempt to defer income into a future year and accelerate expenses that are deductible into a current year. However, this year high-income taxpayers may want to consider the opposite if you believe tax rates will increase in 2009 with the change in president and Congress.

If you wish to move up charitable deductions from 2009 to 2008 but are short of cash, you can charge the donations to your credit card. Deductions are taken for the year they are charged, not the year a payment is made on the credit card.

Accelerating state income tax or real estate tax payments into 2008 that may otherwise be due in 2009 may help, but beware of the Alternative Minimum Tax as many deductions are not allowed for AMT.

Investment strategies - For those investments that have declined in value below your cost basis, consider selling them and immediately purchasing other investments to maintain your investment plan. The capital losses you harvest can be used to offset any capital gains that you will have from mutual fund distributions or other sales of stocks, bonds and real estate.

Additionally, you can claim up to $3,000 of net losses against your other income such as wages and interest income. Losses in excess of the $3,000 can be carried over to future tax years.

If you have assets with long-term capital gains that you intend to sell in the near future, consider selling them in 2008. The maximum federal income tax rate on most long-term capital gains is 15 percent, and this historically very low rate may not be around in future years. If you have a concentrated stock position, take this opportunity to diversify your holdings. Selling now could save big tax dollars, not only due to a low capital gains rate but also because the value of the security is most likely depressed at this time. Other securities you want to purchase can also be acquired at much discounted prices.

Required distributions for taxpayers age 70 - If you turned age 70 - in 2008, you are allowed to delay your 2008 required distributions, from tax deferred accounts such as 401ks and IRAs, to 2009. However, waiting until 2009 will require that you take both your 2008 and 2009 distributions in one year. Not only might this throw you into a higher tax bracket and have a detrimental impact on your allowable deductions, but tax rates may be higher next year.

IRA contributions - Be sure to make your eligible traditional or Roth IRA contributions before April 15, 2009. For 2008, combined Roth and traditional IRA contributions are limited to the lesser of $5,000 ($6,000 if age 50 by the end of 2008) or 100 percent of compensation. Compensation includes wages, salaries, self-employment income and alimony. And for married couples that file a joint tax return, a non-working spouse can still contribute to an IRA if the working spouse has enough income to cover for both.

A little planning time this month may save you taxes this year and next. Consult your CPA or tax advisor to see what makes sense for you and if you really need to pay your fourth quarter tax estimate.

Connie Brezik is a Casper investment advisor and financial planner. Her email is {M3connie@asset-strategies-inc.com.