Conventional tax planning usually means postponing the payment of taxes as long as possible. But a perfect storm of historically low income tax rates and growing government deficits may turn that mantra upside down.

    If you assume that tax rates will rise when the current slate of tax cuts expire after 2012, then it might make sense to hurry up and recognize more taxable income now. One way to do this is by selling appreciated stock this year or next while the long-term capital gain rates remain low. Keep in mind that you must own the stock for more than one year to qualify for long-term rates.

    Also consider converting your traditional IRA, 401(k), or 403(b) to a Roth IRA. Although the conversion generates taxable income now, it might be less painful than in a couple of years. What’s more, if you are age 70? or older, your traditional IRA can also be used this year to make direct charitable donations and offset your required minimum distribution.

    You might also want to hurry up on some tax-advantaged spending. The phase-out rules for itemized deductions of higher earners were suspended through 2012. This opens the door for full utilization of your mortgage interest, real estate tax, and charitable donation deductions. An enhanced tax credit for higher education costs was also extended for two more years. The American Opportunity Credit lets you deduct as much as $2,500 from your tax bill for costs associated with all four years of college, not just the first two. Income limits apply.

    And if you haven’t already done so, a credit still exists for home energy improvements. You can deduct up to 10% of qualified costs, for a maximum lifetime credit of $500.  Rushing to pay taxes now may seem unconventional, but such a strategy might just work this year.

    David Compton is a Certified Public Accountant with offices in Meridian and Birmingham, Ala.