Highlights of 2006 Tax Changes
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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%.
For individuals in the 15% or lower tax bracket, a zero-percent
rate will apply to qualified dividends received in years 2008
- 2010. Stocks must qualify for - 60-day holding period.
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The amount of foreign earned income
that you can exclude increased to $80,000. See Publication
54, Tax Guide for US. Citizens and Resident Aliens Abroad and
Form 2555.
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The standard mileage rate for
each mile use is:
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2006 |
2007 |
Business
Use of Auto |
44.5¢
per mile |
48.5¢
per mile |
Charitable |
14¢
per mile |
14¢
per mile |
Medicial
& Moving Expenses |
18¢
per mile |
20¢
per mile |
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2006 |
Age
50 or older |
IRA |
4,000 |
5,000 |
Roth
IRA |
4,000 |
5,000 |
SEP
(Self-employed) |
44,000 |
44,000 |
SEP
(Employee) |
44,000 |
44,000 |
403(b) |
15,000 |
20,000 |
401(k) |
15,000 |
20,000 |
SIMPLE
IRA |
10,000 |
12,500 |
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If you donate a car to a qualified
organization after 12/31/05, your deduction is limited to the
gross proceeds from its sale by the organization.
Acknowledgement required:
If the claimed value of the car is more than
$500, you must have a written acknowledgement of your donation
from the organization and must attach it to your return. If you
do not have an acknowledgement, you cannot deduct your contribution.
However, if the organization makes
significant intervening use of or materially improves the car,
you generally can deduct its fair market value.
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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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