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Pro Tips 2003
by Cindy J Harris CPA
people have asked – is it true you can write off a car up
The answer is
yes – depending on each person’s circumstances in relation
to the Tax Laws. How great, some say. I answer yes, but you have
to spend $100,000 to get it!
State Legislature recently defeated a proposal that would have taken
away business tax breaks for big vehicles such as Hummers and some
Sport-Utility vehicles. (See www.sacbee.com/content/business/story/8185014p-9116324c.html)
A new ruling
by the IRS examines the exclusion of gain on the sale of a principal
residence due to protesting neighbors. Therefore, the rule about
living at your personal residence 2 out of last 5 years has exceptions.
Discuss your sale with a Professional, such as a CPA, that study
the Law updates.
As a reminder,
reduce the Child Tax Credit by the amount of the Advance Payment
check. Taxpayers who forget could delay their refund. The IRS Website
has help with this issue or call 1-800-829-1040 and they will tell
you the amount of the Advance you received.
More Honda Vehicles
Certified for Clean-Fuel Vehicle Deduction.
Family Tax Relief Act of 2003
2003, President Bush signed this Law. The Law has several tax breaks
for military personnel. As of January 2004, California had not conformed
to this Law. Therefore, there may be differences for the federal
and California returns. Some provisions are retroactive to a prior
The Law includes
rules related to the sale of the residence and a 10-year suspension
of the five-year period of ownership, another exception to the sale
of residence rules.
Wishing everyone a stress-free & refundable Tax Return
For more information,
please contact the Office of Cindy J. Harris CPA at 661-253-3771.
They offer free 15-minute consultations for new clients.
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