Greetings,

As many of you may know, I am on the California Society of CPAs Technology Committee. This committee is comprised of CPAs from all over the state that meet quarterly to discuss various technologies. Last weekend we had a meeting in Catalina and I found out about a great spam blocking program. It's called ChoiceMail.One and I've been using it for the past week. It has cut my spam down to zero. That's right, zero. They have a 14 day free trial on their website. After that it's $39.95. Check it out at http://www.digiportal.com.

If you haven't visited the website (http://www.llhcpa.com), the tax tip this week deals with deferring taxes by using like-kind (also known as Section 1031) exchanges. It's an outstanding way to trade property and defer taxes. If you think this might be something you are interested in, please let me know so we can discuss if this would be a good fit for you. The business tip for May deals with special rules for writing-off business start-up expenses. Important information to know if you are getting ready to start a business and need to know what you can write off. The financial tip of the month deals with making political contributions. Since this is an election year, that may come in handy.

Finally, I will be on vacation from May 27 - June 15th. I am going to Japan for a couple of weeks. The office will be open while I'm gone, but I will not be reachable. If you have any matters that must be dealt with before I leave, please contact me as soon as possible.

Here's the tax tip:

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Are you buying a business vehicle this year?

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The IRS has released the luxury vehicle depreciation caps for business vehicles first placed in service in 2004. For automobiles, the limits are -

- $2,960 for year one (2004)

- $4,800 for year two

- $2,850 for year three

- $1,675 for each succeeding year

If the vehicle qualifies for bonus depreciation, the first year (2004) limit is $10,610.

Limits for other business vehicles, such as light trucks, vans, sport utility vehicles, and electric automobiles, were also released.

Give us a call if you're planning to buy a vehicle for your business and you need more information on these depreciation limits.

Till next time,

Sayonara,,

Linda