Q: I heard that the increasedallowance goes away in 2004. Is that true? V.C.R., Miami, Fla.
A: Not in 2004, but soon. Last year's tax act quadrupled the annual "expensing" allowance for equipment from $25,000 to $100,000 for tax years beginning in 2003 through 2005. (Actually, the limit for 2004 is $102,000, thanks to an adjustment for inflation.) But for the 2006 tax year and beyond, the allowance is scheduled to revert to the previous limit of $25,000. Obviously, that gives your business a powerful incentive to acquire equipment and other assets in 2004 or 2005. Outlook: Congress will face big-time pressure to extend the $102,000 cap beyond 2005; we'll keep you informed.