Topics — Tax Year 2005
Topics — Tax Years 2006 and
Later
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Tax Year 2005
Highway Vehicle Use Tax
Beginning with Form
2290, Heavy Highway Use Tax Return, due
for the period July 1, 2005 through June
30, 2006, the balance due shown on the
form must be paid in full. The American
Jobs Creation Act of 2004 eliminated the
election to pay the tax due in
installments.
Also, if a Canadian or
Mexican vehicle is registered in your
name, the reduced tax rates no longer
are applicable to these vehicles. The
reduced rates shown on the Tax
Computation worksheet will apply only to
logging vehicles.
The Form 2290, Heavy
Highway Use Tax Return (Rev. July 2005)
and the Instructions for Form 2290 (Rev.
July 2005) will be available on the IRS
website before July of 2005.
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Cambios importantes a
la Forma 2290-SP, Declaración del
Impuesto sobre el Uso de Vehículos
Pesados en las Carreteras, para julio
del 2005.
Comenzando con la Forma
2290-SP que vence (debe ser presentada)
para el período que comienza el 1 de
julio del 2005 y termina el 30 de junio
del 2006, el saldo adeudado que se
muestra en la forma debe ser pagado en
su totalidad. El American Jobs
Creation Act (Ley Estadounidense
para la Creación de Empleos) del 2004
eliminó la opción de pagar el impuesto
adeudado a plazos.
Además, si un vehículo
canadiense o mexicano está registrado a
nombre de usted, las tasas reducidas de
impuesto ya no se aplican a estos vehículos.
Las tasas reducidas que aparecen en la
hoja de trabajo titulada Cálculo
del Impuesto aplicarán sólo a
vehículos madereros.
La Forma 2290-SP (Rev.
julio del 2005) y sus instrucciones
separados estarán disponibles en el
cibersitio del Servicio de Impuestos
Internos (IRS)
antes de julio del 2005.
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——————
Modifications
principales au formulaire 2290, Déclaration
d'impôt sur l'utilisation des véhicules
lourds sur les routes (Heavy
Highway Vehicle Use Tax Return),
pour le mois de juillet 2005.
A partir du formulaire
2290 qui doit être soumis pour la période
allant du 1er juillet 2005 au 30 juin
2006, il faut payer l'intégralité du
solde dû indiqué dans le formulaire. The
American Jobs Creation Act of 2004
(la loi sur la création d'emplois américains
de 2004) a supprimé la possibilité de
payer l'impôt dû par acomptes
provisionnels.
De plus, si un véhicule
canadien ou mexicain est immatriculé à
votre nom, les taux d'imposition réduits
ne s'appliquent plus à ces véhicules.
Les taux d'imposition réduits se
trouvant sur la Grille de Calcul-impôt
ne s'appliqueront qu'aux véhicules
forestiers.
Le formulaire 2290 (rév.
juil. 2005) et les instructions du
formulaire 2290 (rév. juil. 2005)
seront disponibles en français sur le
site Internet de l'Internal Revenue
Service (services d'impôts sur le
revenu) avant juillet 2005.
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Section 1202
Exclusion Increased for Gain from
Empowerment Zone Business Stock
A taxpayer other than a
corporation generally can exclude up to
50% of a gain on the sale or trade of
qualified small business stock held more
than 5 years. This is called the section
1202 exclusion. Beginning in 2005, the
exclusion is increased to as much as 60%
of your gain if you meet the following
additional requirements.
-
You sell or trade
stock in a corporation that
qualifies as an empowerment zone
business during substantially all of
the time you held the stock.
-
You acquired the
stock after December 21, 2000.
Condition (1) will still
be met if the corporation ceased to
qualify after the 5-year period that
begins on the date you acquired the
stock. However, the gain that qualifies
for the 60% exclusion cannot be more
than the gain you would have had if you
had sold the stock on the date the
corporation ceased to qualify.
The part of the gain
that is included in income is a 28% rate
gain. See Capital Gain Tax Rates
and see Section 1202 Exclusion in
chapter 4 of Publication
550.
For more information
about empowerment zone businesses, see Publication
954, Tax Incentives for Distressed
Communities.
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Self-Employment
Tax
The self-employment tax
rate on net earnings remains the same
for 2005. This rate, 15.3%, is a total
of 12.4% for social security (old-age,
survivors, and disability insurance) and
2.9% for Medicare (hospital insurance).
The maximum amount
subject to the social security part for
tax years beginning in 2005 has
increased to $90,000. All net earnings
of at least $400 are subject to the
Medicare part.
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Social Security
and Medicare Taxes
For 2005, the employer
and employee will continue to pay:
-
6.2% each for social
security tax (old-age, survivors,
and disability insurance), and
-
1.45% each for
Medicare tax (hospital insurance).
Wage limits. For social
security tax, the maximum amount of 2005
wages subject to the tax has increased
to $90,000. For Medicare tax, all
covered 2005 wages are subject to the
tax. Circular
E (Publication 15), Employer's Tax Guide,
has more information about these taxes.
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Standard
Mileage Rate
For 2005, the standard
mileage rate for the cost of operating
your car, van, pickup, or panel truck is
increased to 40.5 cents a mile for
business miles driven during the period
January 1, 2005 to August 31, 2005, and
to 48.5 cents a miles for business miles
driven during the period September 1,
2005, through December 31, 2005.
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Tax Years 2006 and
Later
Depreciation and
Section 179 Expense
Increased
section 179 limits. The maximum
section 179 deduction you can elect for
property you placed in service in 2006
is increased to $108,000 for qualified
section 179 property. This limit is
reduced by the amount by which the cost
of section 179 property placed in
service during the tax year exceeds
$430,000.
More information.
Publication
946, How to Depreciate Property ,
has more information on these rules.
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Self-Employment
Tax
The self-employment tax
rate on net earnings remains the same
for 2006. This rate, 15.3%, is a total
of 12.4% for social security (old-age,
survivors, and disability insurance) and
2.9% for Medicare (hospital insurance).
The maximum amount
subject to the social security part for
tax years beginning in 2006 has
increased to $94,200. All net earnings
of at least $400 are subject to the
Medicare part.
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Social Security and
Medicare Taxes
For 2006, the employer
and employee will continue to pay:
-
6.2% each for social
security tax (old-age, survivors,
and disability insurance), and
-
1.45% each for
Medicare tax (hospital insurance).
Wage limits. For
social security tax, the maximum amount
of 2006 wages subject to the tax has
increased to $94,200. For Medicare tax,
all covered 2006 wages are subject to
the tax. Circular
E (Publication 15), Employer's Tax Guide,
has more information about these taxes.
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Standard
Mileage Rate
For 2006, the standard
mileage rate for the cost of operating
your car, van, pickup, or panel truck
for your business is 44.5 cents a
mile for all business miles driven.
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Page last updated --
08-DEC-2005
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