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2004
Tax Act
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Dividend income from a qualifying
corporation will be taxed at a maximum rate of 15% for most taxpayers.
Lower income individuals will pay tax on dividends at 5%.Many
dividends will not qualify for the lower 15% rate. You can expect
to see controversy and litigation over which dividends will qualify
for special treatment and which will not - 60-day holding
period.
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The amount of foreign earned income
that you can exclude increassed to $80,000. See Publication 54,
Tax Guide for US. Citizens and Resident Aliens Abroad.
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The standard mileage rate for
the cost of operating your car increased to 37.5 cents a mile
for all business miles driven.
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2004 |
Age 50
or older |
IRA |
3,000 |
3,500 |
Roth IRA |
3,000 |
3,500 |
SEP
(Self-employed) |
40,000 |
40,000 |
SEP
(Employee) |
40,000 |
400,00 |
403(b) |
13,000 |
16,000 |
401(k) |
13,000 |
16,000 |
SIMPLE
IRA |
9,000 |
10,000 |
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Profitable business owners should
plan for greater equipment ppurchases if that is the right move
for your business. Ssection 179 property, specific property for
which a business can purchase and depreciate 100% of the cost
in the first year, increase from $25,000 to $100,000. In addition
bonus depreaication will increase from 30% to 50% qualifying property.
Please note that only businesses purchasing more than $25,000
of qualifying equipment will receive any additional depreciation
benefits.
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Material
Provided is general in nature and does not, nor is it intended
as a rendering of professional services. Do not act upon information
contained herein without consulting appropriate advice based on
through evaluation of the facts relating to your specific circumstances.
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