Greetings,

Tax season is behind us - sort of. We had many more extensions this year than in the past. For the first time ever I had to stick to my cutoff date of March 25th. Even then, there were a few people who had their information in on time and I had to file an extension for them.

The primary reason for this was because the returns that came in required more time in preparation. Why? There are two main reasons: 1) We need to enter more information into the software because of e-filing requirements and 2) brokers were not able to give their customers statements that easily summarized their gains and losses. This year it wasn't enough to know if it was a short-term or long-term gain or loss. In addition we had to break down whether or not the sale was made before or after May 5th. The tax rates changed on that date for long-term gains. For some of you the additional time was minimal, for others it was significant.

Anyway, I want to thank you for your patience. If your return is still in-house we will make every effort to make sure you get it as quickly as possible.

Here's the latest tax tip:

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Hybrid cars qualify for a tax break

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There's been a lot of recent publicity about the tax breaks available for large sport utility vehicles. When used as business vehicles, SUVs are not subject to the same depreciation limits as cars.

A tax break that every taxpayer can use is the deduction allowed for the purchase of a new hybrid gas/electric car. You don't have to use the car in business to get the deduction, and you don't have to itemize deductions on your tax return to benefit from this tax break.

The IRS has certified the Honda Insight, the Honda Civic Hybrid, and the Toyota Prius as eligible for this clean-fuel vehicle deduction.

The taxpayer must be the original owner of the vehicle, and the deduction is taken in the year of purchase. The maximum deduction for 2004 is $1,500; for prior years it was $2,000. If you didn't take the deduction for a qualifying hybrid car you purchased in 2001, 2002, or 2003, you can file an amended return and get a refund.

For additional information or filing assistance, give me a call.

Till next time,

Linda