When Once Is Not Enough

When Once Is Not Enough

by Wayne M. Davies

Does just the thought of preparing your income tax
return this year make your blood boil?

And when you're done, do you break out the champagne
and celebrate like it's 1999? (Or just reach for the Tylenol?)

Well, guess what? I'm going to suggest that you inflict
yourself with that same punishment again, because it may
be that filing a return not once, but twice, for the
same year can put hundreds or even thousands of dollars
in your pocket.

Here's a little known tax fact:

If you overlooked a deduction or made some other mistake
on a previously filed return, you have three years from
the due date of the originally filed return to file a
correction, aka an "amended" return.

[For complete details on the due dates for amended returns,
as well as links to the various forms you'll need to
file the amendment, read this article:
"How To Get A $1,000 Refund By Filing An Amended Return"
http://www.YouSaveOnTaxes.com/tax-tidbit-2.html]

There is one correction in particular that you should
now take a close look at -- something known as depreciation
and the Section 179 Deduction.

[Need a quick refresher course on Section 179? Read this:
"Tax Trap #4: The Quagmire of Depreciation"
http://www.YouSaveOnTaxes.com/tax-trap-4.html]

If you chose to depreciate your business equipment, usually
you could switch to the Section 179 deduction only if you
filed an amended return by August 15 (for sole
proprietorships, partnerships and LLC's) or September 15
(for corporations) -- a mere four or five months after
the original due date.

Well, the IRS finally came to its senses! For tax years
2003, 2004 and 2005, you now have the full three years
from the due date of the originally filed return to change
from depreciation to the Section 179 Deduction.

Still with me? I sure hope so, because this apparently
minor change gives you a great opportunity to recoup
some tax money from the IRS much more quickly than you
would have otherwise.

I've seen many tax returns where the taxpayer or the
accountant didn't even know about Section 179 --
and the result was a much smaller deduction that the law
allowed.

So check your 2003 return for Form 4562; if any depreciation
was deducted for equipment bought in 2003, you now have
until April 15, 2007 (sole proprietorships, partnerships,
LLC's) or March 15, 2007 (corporations) to make the switch.

Filing an amended return to report the Section 179 deduction
could literally double, triple, or even quadruple the
amount of business equipment expense for year 2003.

And should you accidentally take the depreciation deduction
in 2004 and 2005, you'll have the 3-year grace period to
amend those returns, too.

Why pay more tax now than the law requires?

About The Author:

Wayne M. Davies is author of three tax-slashing eBooks for small business owners and the self-employed:

The Tax Reduction Toolkit
http://www.YouSaveOnTaxes.com/toolkit

Incorporation Tax Secrets Revealed
http://www.YouSaveOnTaxes.com/secrets

How To Incorporate Yourself For Free
http://www.YouSaveOnTaxes.com/how-to-incorp

Wayne's eBooks are available separately, or at a discount as a 3-volume set:

The Ultimate Small Business Tax Reduction Guide
http://www.YouSaveOnTaxes.com/ultimate-guide

To receive a free copy of Wayne's 25-page Special Report,

"How To Instantly Double Your Deductions"

click here:

http://www.YouSaveOnTaxes.com

www.YouSaveOnTaxes.com

A Division of Wayne M. Davies Inc.

4660 W. Jefferson Blvd., Suite 220

Fort Wayne, IN 46804

Tel: (260) 459-3858 / Fax: (260) 459-0124

email: YouSaveOnTaxes@aol.com

http://www.YouSaveOnTaxes.com

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