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Tax Tips
General tips and ideas to help you minimize your taxes.
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Advance Payment of Increase in 2003 Child Tax Credit
If you received a check
this summer as advance payment of the increase in the 2003 Child Tax Credit,
you need to be sure to let your tax preparer know the amount of the refund you
received. This advance payment will affect the calculation of your actual
Child Tax Credit on your 2003 tax return. If you received a check, you should
have also received a letter from the IRS, Form 1319, Notice of Advance Payment
of Increase of the 2003 Child Tax Credit. Be sure to bring this IRS letter
with you when you have your 2003 taxes prepared so your tax preparer can
accurately compute your 2003 credit. If you can’t find the letter, at least
know the amount of the refund you received.
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Equipment Purchases Documentation
Whenever you purchase
business equipment, whether new or used, always provide your tax preparer with
the purchase date and purchase price of the equipment. It is a good idea to
actually bring the purchase documents for big-ticket items (vehicles,
tractors, etc.) with you to your appointment so your tax preparer is sure to
pick up the complete purchase price of the equipment. There are often
additional fees and charges associated with a big ticket item that your
preparer will pick up as part of the total cost of the equipment (such as
title fees, insurance, processing fees, UCC filing fees, etc.)
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Capital Gains
The 2003 Tax Act (JGTRRA)
provides an even lower capital gains tax rate for sales after May 5, 2003.
Therefore, it is very important to provide your tax preparer with the sales
date, sales price, purchase date, and purchase price of all capital gains
sales for 2003 so your tax preparer can compute the proper capital gains
rate. Capital gains generally arise from the sales of stock, real estate,
equipment, and breeding stock.
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50% Bonus Depreciation
The 2003 Tax Act (JGTRRA)
provides an even more generous 50% bonus depreciation deduction for new
business equipment purchases after May 5, 2003. Therefore, it is very
important to provide your tax preparer with the purchase date and purchase
price of all new business equipment purchases in 2003 so your tax preparer can
properly apply the 50% bonus depreciation deduction if needed.
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Section 179 Expensing Election
The 2003 Tax Act (JGTRRA)
increases the expensing election limit on equipment purchases from $25,000 to
$100,000 for the 2003, 2004 and 2005 tax years. The expensing election limit
drops back to $25,000 in 2006. Therefore, if you are considering any large
equipment purchases in the future that you want to expense off in the year of
purchase, you may want to consider making these purchases in 2003, 2004 or
2005.
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Missouri Property Tax Credit Claims
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If you are a Missouri
resident 65 years of age or older, and your total income is under $25,000, you
may be entitled to the Missouri Property Tax Credit Claim. This claim is
refundable credit for property taxes or rent paid on your residence, as well
as rent paid to nursing homes and other skilled care residential facilities.
If you qualify for this credit, you will need to provide your tax preparer
with your paid 2003 real estate tax receipts if you own your home. If you
rent your home, or live in a nursing home or other skilled care residential
facility, you will need to provide a rental receipt from your landlord showing
total rent paid in 2003. Copies of these receipts must be attached to the
Missouri tax return when claiming the credit.
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Missouri Annual Registration Reports
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In an effort to reduce
paper and increase efficiency, the Missouri Secretary of State is encouraging
corporations to file their Missouri Annual Registration reports
electronically, and is no longer mailing out blank annual registration reports
to corporations. You must either call them or download the form from their
web site. You can also file your annual registration report online. Please
use our link to the web site for the Secretary of State located on our links
page.
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