IMPORTANT TAX CHANGES FOR 2003 FOR BUSINESSES AND INDIVIDUALS

There are some important tax changes for 2003 which you should be aware of. We at Guagenti & Associates can help you to take advantage of these changes for your 2002 and 2003 taxes.

Some important tax law changes for 2003 that you should be aware of.

INDIVIDUALS
The standard mileage rate for 2003 decreases from 36.5 cents per mile in 2002 to 36 cents for business miles driven and from 13 cents to 12 cents per mile for medical reasons. You should keep alog of miles driven and purpose for your records so that you can take advantage of this deduction.

You can deduct 100% of your self-employment health insurance premiums for 2003. In 2002 you were able to deduct 70% of the premium.

Child and dependent care credit changes take effect in 2003 as follows:
      
-   The credit can be as much as 35% of qualifying expenses
-   The maximum adjusted gross income amount to qualify for the highest rate increases from $10,000 to $15,000.
-   The limit on qualifying expenses increases to $3,000 for one qualifying individual and $6,000 for two or more qualifying individuals.

BUSINESSES
For 2003 you can deduct up to $25,000 under Section 179 for capital assets purchased in 2003.

For tax years beginning in 2002 the minimum NJ Corporation Business Tax for all domestic and foreign corporations(including S corporations) is $500.

These and many more tax changes will have an effect on the way you do business in 2003. We at Guagenti & Associates, CPAs & Consultants, can help you to sort all of these changes out and we can help you to plan your individual and/or business situation in order to take advantage of the new laws.

You can contact us at info@gaa-cpa.com or 973-344-6500 and ask for Russ or Enza.