Tax Guru-Ker$tetter Letter

Friday, December 19, 2003

Last Minute Tax Deductions
In additional to scrambling for Christmas presents this time of year, many people are also on the lookout for tax deductions. Dealers selling heavy trucks & SUVs should be swamped until New Year's Eve as people scramble for that huge deduction.

It's also time for my annual reminder of another less expensive year-end tax deduction -- prepaying your tax preparers for next year's work on this year's tax returns. Sending them a check before January 1 will allow you to get the tax savings from that deduction a whole year earlier. Unless you plan on sending your preparers a huge amount (such as $100,000), it shouldn't cause them any tax problems because that money will almost certainly go right back out for expenses on their books. Traditionally, this time of year is the leanest for income in tax prep offices, yet high in expenses as payments are required for next year's software, forms, classes and reference materials.

- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 12/19/2003 01:19:00 PM Send this post: