Topics — Tax Year 2005
Topics — Tax Years 2006 and Later
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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