Greetings,

A couple of announcements before the tax tip:

After each tax deadline, we look forward to the next deadline and begin working on those projects. Consequently, after April 15th we began working on projects that were due April 30th, May 15th and June 15th. Those projects have kept us very busy, so we have not had the opportunity to work on many of the tax returns that are on extension until August 15th. However, I anticipate that we will be able to start working on those as soon as I return from vacation.

My new employee, Becky, had her baby last week. A little boy. Mom and son are doing great!

Just a reminder that I will be on vacation from May 27th (that's Thursday) through June 15th. The office will be open while I am gone and I have asked a couple CPA friends of mine if they can assist you if there is an emergency.

Here's the tax tip:

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Take action this summer to cut your 2004 taxes

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It will soon be summertime, and you’re probably thinking more about vacation planning than tax planning. But with a little effort, you could do some summer tax-cutting. Here are a few quick ideas for you to consider –

* Hire your children to work in your business this summer to shift income from your higher tax bracket into their lower brackets.

* Combine business and pleasure in your summer travel plans in order to deduct the business portion of your travel costs.

* If you’re going to be out of town, consider renting out your home to receive up to 14 days of rental income tax-free.

* If you and your spouse work, send your children to summer day camp to qualify the cost for the child care credit.

* If you have a boat or other recreational vehicle with sleeping, bathroom, and cooking facilities, treat it as a second home and deduct the interest portion of payments you’re making.

Give us a call if you want details about these or other summer tax-cutters. Then relax and enjoy your summer.

Linda