On October 22, 2004, President Bush signed the
American Jobs Creation Act of 2004. The law
repeals the system of export tax breaks that
brought retaliatory tariffs on U.S. goods by the
World Trade Organization.
The law replaces the former export tax system
with a new deduction for U.S. manufacturers. Other
provisions in the law extend the $100,000
first-year expensing election for the purchase of
business equipment through 2007, limit the
first-year expensing for sport utility vehicles
used in business to $25,000, liberalize the S
corporation rules, and shorten the depreciation
period for certain leasehold improvements and
restaurant property.
Individuals will be allowed to deduct state and
local sales tax on their federal tax returns in
lieu of state and local income tax. The amount of
the deduction a taxpayer can take for giving a
vehicle to charity is changed from "fair market
value" to the amount the vehicle actually sells
for at auction.
Contact us for details on the new law and a
review of your tax situation under these latest
changes. Please call us for a free consultation
and ask about our Profitability Enhancement
Program.
Feel free to forward this email to someone you
think might be interested or provide us with their
email address and we will include them on our
list.
