This is the April 1 issue of Bus & Motorcoach News, and that means April 15 is looming large.
Clearly, if you haven't already filed your taxes, it's time to get moving.
Here, for the procrastinators and those busy looking for last-minute deductions, are a few tax tips:
The biggest item that no operator can afford to overlook this year is the potential impact of the tax-cut law that went into effect last year. It included provisions to spur equipment spending by small companies, including motorcoach operators.
Although the overall tax cut was not specifically targeted to help small bus companies, they can use some provisions to have the government underwrite part of their costs for coaches - new or used - they purchased during the year.
The law temporarily quadruples the annual amount that small companies can write off against their taxes for spending on capital goods. The amount of equipment purchases that firms can immediately expense - rather than depreciate over time - is boosted to $100,000 from $25,000 until the end of next year. After 2005, it reverts to $25,000 again.
Most tangible personal property used in your business qualifies for this tax break, not just coaches. Land, buildings and certain other kinds of property aren't eligible, however.
Other provisions in the law:
* The law doubles the amount of money that qualifies for such expensing to $400,000 from $200,000.
* The additional first-year bonus depreciation deduction, first approved in the 2001 tax cut, increased to 50 percent from 30 percent for investments acquired and placed in service after May 6, 2003. The 50 percent bonus is on top of the regular first-year depreciation allowance.
Between them, these two provisions offer significant tax incentives for spending on business equipment. Both rules have some complex requirements and exceptions. A tax adviser can help determine if you meet the requirements and the extent of the benefits in your particular situation.
One business law firm figures that small business owners will tend to achieve the maximum benefit by expensing purchases of used assets, while saving bonus depreciation for purchases of new assets.
The 2003 law also cut the top tax rate to 35 percent from 38.6 percent.

Overlooked deductions
Many deductions are commonly overlooked because taxpayers don't think they're big enough to matter. When it comes to taxes, every little bit helps and small things can add up fast. Don't overlook the following:
* Business-related subscriptions
* Association dues
* Internet fees, including AOL/Earthlink/Net Zero
* Office supplies of every description
* Annual credit card fees and interest (business only credit cards)
* Administrative fees: Bank account charges, ATM fees, check reorder fees
* Computer software/software support
* Business cleaning/cleaning supplies
* Security fees

IRA time
April 15 is the last day to make an IRA contribution for the 2003 tax year. Filing a tax extension doesn't change that deadline. This applies to regular and Roth IRAs. Remember, regular IRAs are tax deductible and Roth IRAs are not.

Proof of mailing
Many tax advisers say it's smart to send tax returns by certified mail, return receipt requested, or get a receipt from an IRS-approved express delivery service. This is the only proof you can count on to prove you mailed your tax return on time.