1.) If you sold investment or other appreciated assets during the year, be sure to pre-pay your state income taxes before December 31 as this will then be deductible in the current year. This is especially important because your marginal tax rate may be higher this year (because of the assets you sold) and the state tax deduction will therefore save you more money than if you wait until next year. If, on the other hand, you expect your marginal tax rate to be much higher next year, don't prepay those taxes.

2.) Look for investments that can be sold at a loss in order to offset some of your taxable gains (euphemistically called "harvesting losses" by most advisors). The wash sale rule prevents you from taking a loss for a stock that you re-buy within 30 days of your sale. If you want to maintain the same asset allocation in your portfolio, mutual funds are a little easier to deal with. That's because each fund is considered a separate entity, even if two funds have identical investment objectives. For example, you could sell shares in the Vanguard Index 500 fund for a loss and immediately reinvest in the Dreyfus S&P 500 Index Fund and the wash sale rule would not apply. Yet, your portfolio would essentially have the same allocation at the end of the day.

3.) If you haven't deferred the maximum into your 401(k) (and you're not on track to do so) you could save some taxes by temporarily deferring more -- even all -- of your paycheck during the waning weeks of 2000. This only works if your household budget can stand the strain, of course.

4.) If you're self-employed and wish to make the biggest possible deductible contribution to a retirement plan, consider setting up a Keogh. These are pension plans for the self-employed that allow you to make deductible contributions of up to 25% of your net income to a maximum of $30,000. The catch is that, unlike an IRA or SEP-IRA, which can be established anytime prior to filing your tax return, the Keogh must be established in the current year. You still don't have to fund it until you file your return.