Copyright 2004 San Antonio Express-News
San Antonio Express-News (Texas)
February 21, 2004, Saturday , METRO
SECTION: BUSINESS EXPRESS; Pg. 4H
LENGTH: 717 words
HEADLINE: PERSONAL FINANCE ; Know your deductions ; Tax preparers say businesses and individuals often miss out on possible tax savings.
BYLINE: Analisa Nazareno
BODY: Large corporations may well know about the money they could save this tax season using the updated version of the Section 179 deduction.
But for many small mom-and-pop businesses, the labyrinth of tax laws and possible deductions serve to confound them, with thousands of dollars in potential savings eluding them each year.
"The greatest tax savings come in the way of credits, earned income tax credit, credit for the elderly," said Beanna Whitlock, the Internal Revenue Service's national liaison, who addresses concerns tax preparers may have about the IRS.
"Credits for taxpayers need to be fully utilized. And many are refundable credits, like the earned income tax credit," she said. "And that's why I urge people to go to tax professionals who know these things because the government is not going to say, 'You didn't take the credit that you were entitled to.'"
This year, many small-business owners may be able to save thousands of dollars with the updated Section 179 deduction. Congress updated the section on equipment depreciation last year to encourage businesses to upgrade.
Business owners now are allowed to deduct from their profits up to $100,000 worth of equipment bought after May 6, 2003.
The previous version of this section encouraged business owners to take deductions on the depreciation of the value of new equipment over their life rather than deduct for its value.
The equipment-purchasing deduction was limited to $25,000 regardless of the cost of the equipment.
"With Section 179, you could depreciate over time or you could deduct the whole cost this year instead of depreciating over 10 years," Kenneth Vargas, an IRS spokesman based in Austin, said.
Vargas said few of the business owners he's spoken with knew about the updated section.
"For someone doing $100,000 to $200,000 in revenue, this can make a huge difference," he said.
The San Antonio Express-News owns the copyright to this story. For a full copy of this story, e-mail Analisa and she will send you a clip via e-mail or snail mail.
San Antonio Express-News (Texas)
February 21, 2004, Saturday , METRO
SECTION: BUSINESS EXPRESS; Pg. 4H
LENGTH: 717 words
HEADLINE: PERSONAL FINANCE ; Know your deductions ; Tax preparers say businesses and individuals often miss out on possible tax savings.
BYLINE: Analisa Nazareno
BODY: Large corporations may well know about the money they could save this tax season using the updated version of the Section 179 deduction.
But for many small mom-and-pop businesses, the labyrinth of tax laws and possible deductions serve to confound them, with thousands of dollars in potential savings eluding them each year.
"The greatest tax savings come in the way of credits, earned income tax credit, credit for the elderly," said Beanna Whitlock, the Internal Revenue Service's national liaison, who addresses concerns tax preparers may have about the IRS.
"Credits for taxpayers need to be fully utilized. And many are refundable credits, like the earned income tax credit," she said. "And that's why I urge people to go to tax professionals who know these things because the government is not going to say, 'You didn't take the credit that you were entitled to.'"
This year, many small-business owners may be able to save thousands of dollars with the updated Section 179 deduction. Congress updated the section on equipment depreciation last year to encourage businesses to upgrade.
Business owners now are allowed to deduct from their profits up to $100,000 worth of equipment bought after May 6, 2003.
The previous version of this section encouraged business owners to take deductions on the depreciation of the value of new equipment over their life rather than deduct for its value.
The equipment-purchasing deduction was limited to $25,000 regardless of the cost of the equipment.
"With Section 179, you could depreciate over time or you could deduct the whole cost this year instead of depreciating over 10 years," Kenneth Vargas, an IRS spokesman based in Austin, said.
Vargas said few of the business owners he's spoken with knew about the updated section.
"For someone doing $100,000 to $200,000 in revenue, this can make a huge difference," he said.
The San Antonio Express-News owns the copyright to this story. For a full copy of this story, e-mail Analisa and she will send you a clip via e-mail or snail mail.
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