Santa won't be bringing tax breaks
Plan cutbacks now for 1994,experts say
NEW YORK — In a season dominated by Santa Claus, save a little of your time and attention for Uncle Sam.
The Associated Press
So advise the nation's tax experts, noting that the clock runs out this month not only on holiday shopping plans but also on most practical ways to cut your tax bill for the year.
"Don't wait until you're well into 1994 to think about your tax status," urges Greg Sullivan, vice president at the International Association for Financial Planning.
You will have plenty of time after New Year's to calculate your tax bill for 1993, he notes, but only limited opportunities to take any action about it.
What follows is a basic, though by no means comprehensive, check list of lastminute tax planning possibilities for the year:
Contributions to charity. You can get 1993 deductions for charitable contributions of money made by check or credit card through Dec. 31. If you give tangible items such as old clothes or household goods, take care to document your contribution.
State and local taxes. Pay bills for estimated state income taxes, local property taxes and so forth by Dec. 31 so that you can deduct them on this year's return.
— Deferring income and accelerating expenses. If you are self-employed or can
otherwise control when you receive income, hold off billing customers until after the first of the year. Similarly, pay for any pending deductible business expenses before the end of the year.
— Gifts. "Under current law, the first $10,000 of gifts of qualifying property each year are exempt from gift and estate taxes," notes the accounting firm of Grant Thornton. "This annual exclusion applies to each recipient, or 'donee.' Over a period of years, the reduction in estate taxes can be considerable."
Adds Lawrence Krause at the Clarfeld and Co. accounting firm in New York: "Gifts not made by Dec. 31 cannot be carried over."
Investments. A stock, bond or mutual fund on which you have a paper loss can be converted into a tax deduction, within limits specified under the rules, by selling it
before Jan. 1.
Consider waiting to sell any investment at a profit until after the first of the year, to keep that transaction from increasing your 1993 taxable income.
Strategy. Resolve to operate with a year-round tax planning strategy starting in 1994, so that hasty year-end moves won't be necessary in future holiday seasons.
Most standard year-end tax recommendations presume that you won't be in a much higher tax bracket next year and thus want to defer taxes into 1994 rather than accelerating them into this year.
Says the accounting firm of Deloitte & Touche: "Even if you expect your tax rate to be the same in 1993 and 1994, it may be worth paying some deductible expenses a few months early in order to gain the tax benefit a full year sooner."
Holiday cheer in the office can lead to harassment
The Associated Press
WICHITA — "Tis the season for office parties, but keep the holiday merrymaking on a professional level, advises a Wichita State University business professor.
"The holiday season is coming up. So there will be a lot of office parties and a more relaxed environment," professor Esther Headley said. "Yes, you can have fun. But make sure you don't do anything that will offend anybody by your behavior."
Sexual harassment continues to be a problem in the workplace, she said.
In the wake of the Clarence Thomas-Anita Hill controversy of alleged sexual improprieties by Thomas, sensitivity to sexual
harassment and complaints about it increased, said Brandon Myers, chief lawyer for the Kansas Human Rights Commission in Topeka.
In fiscal 1991, there were 75 Kansas sexual harassment cases reported to his agency, Myers said. The number doubled in fiscal 1992, after Thomas' U.S. Supreme Court confirmation hearings at which Hill's allegations were discussed.
"I don't think the United States Supreme Court or any other court will ever be able to
Brian Grace, a Wichita attorney who handles employment cases, said sexual harassment could be difficult to prove, especially when it came down to one person's word against another's.
draw an absolute hard and fast line," Grace said.
But the court recently held that a person need not suffer serious psychological injury to have a case. Any behavior that unreasonably interferes with working conditions can constitute sexual harassment, the court said.
"The courts are getting more used to dealing with the blatant sexual harassers."
In the two cases the court heard, the behavior plaintiffs objected to included anti-female obscenities, displaying nude posters, comments about anatomy and a male boss who asked a female employee to get coins out of his pants pocket.
Headley said. "That's pretty much more cut and dried. Where it gets more difficult to prove in the court system is the issues that deal with hostile work environment and cultural diversity as it relates to sexual harassment."
Headley said professionalism still was the best way to guard against sexual harassment problems.
"My advice to an individual, whether in the office or at a holiday party coming up with the Christmas season, is always play it safe," she said. "If you feel that you may be offending somebody by your behavior or they are upset by the behavior, play it safe. Always act professional."