Greetings,

Don't forget that the cutoff date for individual information to be in our office is March 18th. If your information is not in by that date we do not guarantee that your tax returns will be done by April 15th.

Several clients have asked if I accept credit card payments. I do, through PayPal. My PayPal ID is llhcpa.

Don't forget to check out my website http://www.llhcpa.com for more tax tips. This week's Tax Tip has to do with education expenses for teachers, the Business Tip of the Month deals with health insurance for small business owners and the Financial Tip of the Month deals with preparing for a job loss.

Many thanks to those clients and friends who have referred new clients this tax season. I appreciate your confidence.

Here's the tax tip:

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Are your business plans taking the new depreciation rules into account?

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The tax law changes so often that it's easy to lose track of current rules. As you make business purchasing decisions in 2005, be aware of these recent changes.

* 50% bonus depreciation on new equipment purchases is no longer available.

* The limit on first-year expensing for the purchase of new or used business equipment increased to $105,000 for 2005.

* If total equipment purchases for the year exceed $420,000, the $105,000 amount begins to phase out.

* The first-year expensing limit for sport utility vehicles (SUVs) purchased for business use is $25,000. This limit applies to vehicles weighing not more than 14,000 pounds.

* For 2005, the depreciation period for qualified leasehold improvements to commercial real property and qualified restaurant property is 15 years. Next year, you'll once again have to deduct the cost of these improvements over 39 years.

Please feel free to share this information with friends and colleagues. I would be happy to answer any questions you may have.

Till next time,

Linda