It's always a good idea to start your tax planning each year by looking at last year's tax forms. Tax attorney Donna LaValley, contributing editor of JK Lasser's Your Income Tax 2005 has a warning though! Some tax laws have changed. For example, a small business owner who bought a heavy vehicle late in the year may not be able to write the whole thing off.

"How much you can write off on the purchase of a SUV has dropped dramatically. It used to be up to the first year expense limit, which was $102,000 in 2004. It is now going to be capped at $25,000."

The law changed in a set of tax reforms signed by President Bush on October 22nd, 2004. Donna says if you bought a heavy duty vehicle like a SUV after that day, the newer lower writeoff rules will apply. On a good note though, you can take a deduction on the 2004 Schedule A for charitable contributions you made in the month of January to groups working to aid victims of the South Asia Tsunami. Congress passed the special tax break early in January and it was immediately signed by President Bush.

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