April Discomfort Rides On Moves Made Now Rule Of Thumb: Speed Losses, Delay Income

Oh, no. It’s “tax” time again.

Yes, tax returns aren’t due for six months. But the return is only paperwork, just an account of your finances the year before.

What you say in your return next spring - and how much you’ll have to pay the government - could well depend on decisions you make between now and Dec. 31.

While individual circumstances vary, the general rule is to postpone receipt of taxable income and profits for as long as possible and to speed up moves that reduce your taxes, such as taking investment losses.

This leaves you with more money at work - earning interest or investment profits.

The main exception is if you expect to move into a higher tax bracket next year, which could happen if your income goes up or you get married. Even in this case, though, it’s important to weigh the amount you save in tax by moving income to this year against the potential earnings you lose by using money to pay taxes a year early instead of keeping it at work.

Election years add uncertainty, and President Clinton and Bob Dole do have different tax-cut proposals. But for most people, this shouldn’t affect strategy.

If you postpone income until 1997, for example, you’ll get the same tax benefit you would in any year - and might do even better if Dole’s 15 percent tax cut is enacted.

The president’s most significant tax proposal calls for eliminating tax on profits from the sale of a home. For a few people, this might be reason to postpone a home sale until 1997.

But most homeowners’ house profits are already sheltered by rules allowing profits to be rolled into a new, more expensive home.