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GET CONNECTED TIPS
Nifty tax tips
Deductions Now Or
Later?
The 2003 tax-relief package gives
small-business owners the chance to write off
up to $100,000 in capital-acquisition
expenses. You can also claim a first-year
bonus depreciation of 50 percent. But watch
out. Taking those deductions this year means
you may not be able to claim them next
year—and next year your income, taxes or both
could be higher. So talk to your tax
professional about the best time to jump on
those deductions.
Preparation Pay Off
According to an online survey conducted by the
National Association For The Self-Employed (www.nase.org),
a majority of small-business owners pay a
professional to prepare their taxes. Sixty-one
percent of the survey participants said they
hire a tax pro. The good news is that tax
preparation fees related to a business return
are deductible business expenses. Even tax
prep fees that are related to your personal
tax return can be deducted as a miscellaneous
itemized deduction on Schedule A, line 21.
Name
Game
If you married, divorced or changed your name
for any other reason in 2003, you could be
headed for trouble on your tax forms. The IRS
requires that the names on tax returns match
those registered with the Social Security
Administration (SSA). A mismatch between a
name on the tax return and a Social Security
number could increase your tax bill or reduce
your refund.
Inform the SSA of your name change by filing
Form SS-5 at a local SSA office. Or download
the form at
www.ssa.gov. It usually takes two weeks to
have your name change verified.
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