Q: I am a self-employed contractor and take in about $90,000 a year from my business. You said the new maximum expensing allowance is now $100,000, so can I write off the entire cost of a new $30,000 piece of equipment if I buy it in December? M.W., Lynbrook, N.Y.
A: It depends on your taxable income for the year. You're right that the newexpensing allowance rises to $100,000 for business assets acquired in 2003. (See answer above.) But your allowance is still limited to your taxable income from your business, including the salary you paid to yourself. In your case, you can deduct the entire cost of equipment placed in service this year as long as your taxable income exceeds $30,000. Note: Any amount disallowed by the taxable-income limit carries over to next year.