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2005 Tax Act
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Beginning in 2003, qualified
dividends are subject to the 5% or 15% maximum tax rate that
applies to net capital gain.
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Qualified dividends should be
shown in box 1b of the Forms 1099–DIV or similar statements
you receive.
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If you have qualified dividends,
you must figure your tax by completing either Schedule D (Form
1040) or the Qualified Dividends and Capital Gain Tax Worksheet
in the Form 1040 or 1040A instructions.
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60-day holding period. Dividend
received on a stock held for at least 60 days in the 120-day
period beginning 60 days before the ex-dividend date.
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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 and Form
2555.
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For 2005, the standard mileage
rate for each mile of business use is:
- 40.5
cents per mile for the period January 1 through August
31, 2005, and,
- 48.5
cents per mile for the period September 1 through December
31, 2005.
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2005 |
Age
50 or older |
IRA |
4,000 |
4,500 |
Roth
IRA |
4,000 |
4,500 |
SEP
(Self-employed) |
42,000 |
42,000 |
SEP
(Employee) |
42,000 |
42,000 |
403(b) |
14,000 |
18,000 |
401(k) |
14,000 |
18,000 |
SIMPLE
IRA |
10,000 |
12,000 |
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Make sure the charitable organization
is an IRS qualify charity.
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For most non-cash charitable
contributions made after June 3, 2004, taxpayers must satisfy
certain reporting requirements, based on the value of the
deduction. For claimed contributions more than $5,000, taxpayers
must obtain a qualified appraisal and attach Form 8283 to
their tax return.
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For claimed contributions
more than $500,000 (if art, $20,000 or more), taxpayers must
attach a copy of the appraisal.
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For donations after Dec. 31,
2004, if the claimed value of the donated motor vehicle, boat
or plane exceeds $500 and the item is sold by the charitable
organization, the taxpayer is limited to the gross proceeds
from the sale.
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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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