Education Loan Interest Deduction. 



Beginning in 1998, interest paid on a qualified educa- 

 tion loan that was used to pay tuition, room and 

 board, and related expenses for post-secondary schools 

 is deductible for certain taxpayers. The deduction is 

 limited to $1,000 in 1998, but gradually increases to 

 $2,500 by 2001. 



Self-Employed Health Insurance Deduction 



The 1997 Tax Act accelerates the percent deduction 

 for health insurance costs for the self-employed. For 

 1998 and 1999, the deduction is 45%; in 2000 and 

 2001, it increases to 50%. 



Home Office Deduction 



The new law expands the definition of principal place 



of bt 



1. the office is used by the taxpayer to conduct 

 administrative or management activities of the 

 trade or business and 



2. there is no other fixed location of the trade or 

 business where the taxpayer conducts substantial 

 administrative or management activities. 



Caution! Home office expenses are deductible only if 



the office is used by the taxpayer exclusively on a 

 regular basis as a place of business. 



Adoption Expenses 



Individuals may claim a tax credit of up to $5,000 

 ($6,000 for a child with special needs) for qualified 

 adoption expenses (e.g. legal fees, court costs) subject 

 to limits based on adjusted gross income. 



Tax Payment By Credit Card — An Update 



The Taxpayer Relief Act of 1997 will allow taxpay- 

 ers to charge any balance due on major credit cards 

 beginning with the 1998 Form 1040 filing season. 

 Unfortunately, this same legislation prohibits the 

 IRS from paying a fee for taxpayer use of the credit 

 card system, meaning such fees will be paid by the 

 taxpayer. As of October 1998, the only companies 

 that have signed on are American Express and 

 MasterCard. 



Theresa M. Murphy is a certified public accountant 

 with offices in Portsmouth, New Hampshire. She 

 specializes in accounting, tax planning, and consulting 

 for professionals, small businesses, and individuals. 

 The telephone number is 60^-4^6-8009; fax number, 

 6o}-42j-oi46. 



Nu-Form Products 

 Landmark Products 

 Pre-filled Flats & Pots 

 Klerks Films 



"Helping You to Grow'' 



B.E. Supply 



GREENHOUSE SUPPLIES & EQUIPMENT 



Hemlock Road, Langdon 

 Mailing Address: P.O. Box 0, Charlestown, New Hampshire 03603 



• Restricted Pesticides 



• Kord Products 



• Fertilizers 



• Distributors for Hyde Park &. Sunshine Soils 



Work: 603/835-6930 Home: 603/835-2523 Fax: 603/835-2180 



DECEMBER 1998 JANUARY 1999 



