For a copy of this article in MS Word Format, right click here and select Save Target As.

Pro Tips 2003 Tax Year
by Cindy J Harris CPA

$100,000 Write-Off

Many people have asked – is it true you can write off a car up to $100,000?

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!

The California 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)

Sale of Residence

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.

Child Tax Credit

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.

Clean-Fuel Vehicle Deduction

More Honda Vehicles Certified for Clean-Fuel Vehicle Deduction.

Military Family Tax Relief Act of 2003

In November 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 year.

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 Season…

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.


For a copy of this article in MS Word Format, click here.
Return to the main articles page.