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					                                                           9407c896-2feb-440f-81ca-4e626e6c82dd.xls
                                                           Pellini Gold Cordes, LLC.
                                                           1040 Tax Data - Key Items
GG 9/26/2007                                                       2007

       11 Brackets
                           2007        Single                MFJ                      MFS                    HH
                                    Tax        Inc.       Tax          Inc.        Tax        Inc.       Tax            Inc.
                   10.00%                 0          0           0           0           0          0         0               0
                   15.00%              783       7,825      1,565       15,650         783      7,825     1,120          11,200
                   25.00%            4,386      31,850      8,773       63,700       4,386    31,850      5,838          42,650
                   28.00%           15,699      77,100     24,973      128,500      12,486    64,250     22,700         110,100
                   33.00%           39,149     160,850     43,831      195,850      21,915    97,925     41,810         178,350
                   35.00%          101,469     349,700     94,601      349,700      47,301   174,850     98,356         349,700
            Child under age 18 - unearned income same as parents on income over 750 (750 exemption +750 at 10%))

     1405 AMT               AMT exemption in 2006
           Exemption            42,500                 62,550                              31,275              42,500
           Phased out - 25% of amount AMT AGI exceeds:
                      starts 112,500                 150,000                               75,000            112,500
     1401              ends 282,500                  400,200                              200,100            282,500
           Rates
                    26.00% 175,000                   175,000                              87,500              175,000
                    28.00% over 175k              over 175k                          over 87.5k             over 175k

      126 Standard Deduction
                       2007                        5,350                    10,700                  5,350                 7850

              Additional Standard Deduction for blind or age 65 or older
                                                   1,250                     1,050                  1,050                 1300
              Children who are dependents
                                      850        or       300 plus earned income up to 5,350

      133 Exemptions             2007
                                   3,400
                               Reduced by 2% for each $2,500 of AGI over                                                          phase out of
                           2007 156,400                  234,600                          117,300            195,500              exemptions reduct-
                                                                                                                                  ion is one-third in 2007


      137     Dependents
              2007--> 3,400
  137/143     Child             under age 19 at year end, or
                                under age 24 and still in full time student at year end
              Others - must have less than 3,400 of income

      139     children of divorced parents-- see special rules




     2648 SS Tax Base               2006         2007
                                   94,200       97,500


            Employee Benefits

      860     Medical Savings Account (MSA)
     1020      Used in conjunction with "high deductible" health insurance
               Used solely to pay unreimbursed health care expenses of taxpayer, spouse, and dependents

                                                    Individual                  Family
                                                   2006         2007          2006         2007
              Min deductible                      1,800        1,900         3,650        3,750
              Max deductible                      2,700        2,850         5,450        5,650
              Max Out of pocket                   3,650        3,750         6,650        6,900
              Contributions limitation          65% of deductible          75% of deductible




      861     Cafeteria Plans                                               Page 1
               Offers employees choice of taking cash or receiving qualified benefits
                                                           9407c896-2feb-440f-81ca-4e626e6c82dd.xls
               Cash is included in gross income as compensation
               Qualified benefits are excludable to extent allowed by law

      861      Flexible Spending Accounts
               Allow employees to make pre-tax contributions to a FSA account for reimbursement of health and/or dependent care expenses
               Unused contributions are forfeited at the end of each year

      859      Health Savings Account (HSA)
               Used in conjunction with "high deductible" health insurance

               Plan design requirements:                       Single        Family
                Min deductible                                    1,100         2,200
                Max Out of Pocket                                 5,500        11,000

               Prior to age 65:
               An individual or spouse may make annual pre-tax contributions equal to the deductible up to a max of $2,700 single or $5,450 family
               Tax-free withdrawls may be made as the allowable medical expenses are incurred

               After age 65:
               Distributions will be tax-free provided they are used for eligible heath care expenses.
               Other distributions will be included in income and assessed a 10% penalty

               Eligible expenses include actual medical expenses, retiree heath ins premiums, COBRA premiums, LT care premiums
                 and premiums for a health contract while receiving unemployment compensation. Eligible expenses DO NOT include
                 regular medical insurance premiums and Medicare supplemental policies.

               Upon death, HSA may be passed on to spouse tax-free or to another beneficiary on a taxable basis.



Deductions

             Employee Business
     941B     Statutory Employee - Not subject to 2% floor

      947      Mileage ---        48.50 cents

      910      Meals              50% exclusion
      915                         100% deduction for on site lunches for convenience of employer and party/picnic

      910      Meals -- interstate truck drivers while away from home - deductible amount                       (Employees subject to DOT regulation)
                                    2006/07      2008/-->                                                       Air trans, railroad ees, truck & bus drivers
                                      75.00%       80.00%

      918      Business Gifts
               Limited to $25 per recipient per year.

     954A      Travel            (PA now a low cost state)
                                            On or after October 1, 2006                             On or after October 1, 2005
                                                            Meals &     Max Per                                  Meals & Max Per
                                              Lodging      Incidental    Diem                        Lodging Incidental      Diem
               Hi cost                               188           58        246                          168          58       226
               Low Cost                              103           45        148                            96         45       141
               incidental expense per diem                           3                                                   3

      961      Home office
               exclusive space, used regularly as a principal place of business or to see clients/customers
                need as a base to get auto mileage from home to various jobs

941C/1084      Qualified Classroom Expenses -"miscellaneous itemized" deduction available to teachers, instructors, counselors, teachers, and aides.
                For unreimbursed expenses incurred in connection with books, supplies, computer equipment, and supplementary materials
                used in the classroom.
                Must have worked at least 900 hours during school year at a school that provides elementary or secondary education.

                 2007 -- up to $250 per year / need documentation. (extended through 12/31/07)
                 for tax years after 2007 - deductable as miscellaneous itemized deductions




             Non Business/Itemized Deductions
                                                                               Page 2
       Itemized Phaseout - in General          9407c896-2feb-440f-81ca-4e626e6c82dd.xls
1014       3% above following amounts is subtracted from total itemized
                               Single                  MFJ                   MFS                              HH

                             156,400                  156,400                      78,200                156,400
                          note : medical /investment int / casualty and theft are not subject to 3% calc
                          elimination of phase out commences in 2006
1016   Medical
       In excess of 7.5% of AGI
                         Mileage 18 cents/mile
                         Special Schooling
                         Nursing home -- 100% of meals
                         Capital improvements in excess of increase in value to home
1018                     Paid w/in 1 year of decedents death may go on last 1040 if incurred prior to death
1020                     MSA's - rare
1028   Taxes             Real Estate, State and Local --- NOT deductible for AMT
                         May deduct state sales taxes in lieu of state & local income taxes for tax years 2006 & 2007

1043   Interest -- Must be traced to the original use of proceeds
                          must be on taxpayer's debt

1045                      Personal = non deductible

1044                      Investment interest
                             Limited to investment income (int,div's, other passive inc.)
1094                          Capital gains are NOT inv income unless an election is made to tax such ordinary rates

1047                      Qualified Residence interest
                            Primary residence and
                            ONE Other
                           Limit
                               1,000,000 primary plus 100,000 GRAND TOTAL DEBT

                          Interest on second Mortgage (or home equity loan) is limited to interest on the first $100k of HE debt

                          See portion of Mtg interest from a rental property that is used over 10% of rented days or 14 days

1048                      Home Equity Indebtedness
                           deductible to the extent of that it does not exceed the principal amount of acquisition debt
                           immediately before refinancing, proceeds can be used for personal expenditures

1082                      Education Loans
                          elimination of 60 mo time period, can be deducted on voluntary payments
                           Dependents can't claim
                           Must be obligor
                           Loan must have been SOLELY for education costs (NO MIXED LOAN)
                                      w/in 60days and can use CCard first then loan
                                      Loan can't be from related party
                            Limits
                                         2003-->
                                          2,500     Not changed

                                Phase outs begin at:   and reduce $166.66 for each $1,000 of inc.
                                       Single           MFJ        MFS           HH
                                start     55,000        110,000           0      55,000
                                 end      70,000        140,000           0      70,000


1085                      Interest paid on loans to purchase/carry obligations that pay tax exempt income/interest is NOT deductible




1058   Contributions

1059                      Priority   Limits                                  Types
                               1     50% of AGI                       Page 3 501C3 charities
                               2                                            Non operating foundations (war vets), fraternal orgs., cemeteries
                                      30% of AGI 9407c896-2feb-440f-81ca-4e626e6c82dd.xls
1062                           3      30% of AGI - Certain cap gain         (appreciated securities)
                               4      20% of AGI - Appreciated stock to a non-operating foundation

                          American Jobs Act - Beginning in 2005, taxpayers contributing a qualified vehicle valued at over $500 to a charity
                          must meet new more stringent substantiation requirements.
                            taxpayer must obtain from charity written statement identifying taxpayer, their social security number and
                            the vehicle's identification number. If the vehicle is sold, the groos proceeds are the taxpayer's contribution.
                            If the vehicle is not sold, the fair market value is used.

1060                      Carryforward 5 year

                          LIFO (current yr. before prior yr.)

                          Types
                                      Cash/check (must have receipt if over $250. and for all cash)
                                      Mileage - 14 cents/mile                (14 cents for 2006)
                                      Out of Pocket
                                      Value of services NO NO NO
                                      Value of rental vacation house NO NO NO -- only out of pocket cost
                                      Item purchased - cost in excess of value received
1064                                  Appreciated property
1062                                     Ordinary income property - Basis
                                         Long term Capital Gain
                                            FMV if subject to 30% limitation
                                            otherwise basis
                                            NEVER SELL APPRECIATED ASSETS AND GIVE CASH
                                            NEVER GIFT DEPRECIATED ASSETS - SELL THEM AND GIVE THE CASH

                                      See JJP/DGG re: charitable remainder trust for elder individuals with a large block of
                                      appreciated securities

1064                                  Unrelated student (elementary or high school) in home sponsored by a charitable org.
                                           Limited to $50/mo.

1061                      Over $500 - form 8283 part A
                          Over $5,000 - 8283 part B AND an APPRAISAL


1073 Moving Expenses             Old home to New home distance >Old work - old home miles + 50
   not 2%            Transport of household goods                   Must keep job 39 weeks (78 self employed)
                     Travel (lodging but not meals)
                         14 cents per mile or actual
1080 Union Dues

1081   Job Hunt
                          Even if not successful
                          MUST be SAME trade or bus




1082   Education
                          even if leads to a degree
                          maintains or improves skills or
                          meet express requirements of employer

                          NON Deductible if leads to a new trade or
                          meets minimum requirements to qualify for present employment
                          Continuing education is deductible

       $ 4,000 AGI deduction allowed for 2006 ($4,000 for 2006 & 2007)
                        IF AGI is less than $65,000 single / $130,000 Married


1086   Investment Expenses (advisory fees)
         subject to 2%

1093   Legal fees for production of income e.g. to negotiate employment contract
         subject to 2%                Divorce legal fees Non Ded (except part related to tax and/or financial planning)

1748   Casualty/theft/involuntary conversion
                                                                    Page
       to the extent exceeds 10% of AGI (inexcess to $100 floor per loss) 4
                                                  9407c896-2feb-440f-81ca-4e626e6c82dd.xls
1173 NOL's
        back 2 years forward 20
     *** For 2001/2002, carryback period is increased to 5 years unless an election is made otherwise.
     *** Election can be made to forego carryback period or to revert back to 2 year carryback. May elect back to 5 yr if done before 10/31/02




1195 Hobby Loss
       Expenses only to the extent of revenue
       Income on page 1 of 1040
       Expenses on sch A AND subject to 2% limit

       Hobby = if no profits 3 of 5 years I.e. need 3 profit yrs out of 5 to not be a hobby
                                                   Be careful about Hobby loss
2062 Rental real estate
     Losses allowed up to $25,000 IF active participant
     Phased out between $100k to $150k


1214 Auto depreciation
                                2007         2006          2005          2004         2003        2002       2001         2000        1999     1998
                          1       3060          2960           2960        10610*     10710**     7660***       3060          3060     3,060     3,160
                          2       4900          4800           4700          4800        4900        4900       4900          4900     5,000     5,000
                          3       2850          2850           2850          2850        2950        2950       2950          2950     2,950     2,950
                          4       1775          1775           1675          1675        1775        1775       1775          1775     1,775     1,775
                          5       1775          1775           1675          1675        1775        1775       1775          1775     1,775     1,775
       * The 10, 610 limit applies only to vehicles that qualify for additional 50% depreciation (new), otherwise the limit is 2,960
       ** The 10, 710 limit applies only to vehicles that qualify for additional 50% depreciation (new), otherwise the limit is 3,060
       *** The 7,660 limit applies only to vehicles that qualify for additional 30% depreciation (new), otherwise the limit is 3,060




1300 TAX Credits

1301     Child and dependent care

                            Under age 13 or older if handicapped

                            Payments may be made to a relative if not claimed as a dependent and a child not under 19

                            Overnight camp does not count

                            Qualified expenses limited to wages of lower earnings spouse unless full time student or disabled

                            20% to 35% of expenses depending on AGI
                              35% to 20% begins to phase at $15,000.
                               1% for each $2,000
                                at $43,000 = 20%
                             Children      credit
                                 1            3,000
                            2 or more         6,000




1302     Child tax credit
                            Less than 17
                              2003-10        $1,000


               Phase outs begin at: and reduce $50 for each $1,000 of inc.over
                             Single       MFJ          MFS          HH

                                75,000      110,000        55,000       Page 5
                                                                        75,000
       portion of credit may be refundable            9407c896-2feb-440f-81ca-4e626e6c82dd.xls

1303   Hope
                             1,650/student!!           100% of first $1,100 plus 50% of next $1,100
                             Each of first two years of post secondary edu.
                             Must take at least 50% load at accredited edu.
                             ONLY if Lifetime is not claimed
                             AND if no Edu IRA funds are used !
                             Student cannot have been convicted of Drug offense
                             Any amount used from EE exclusion reduces amounts applicable to the credit




1303   Lifetime              After 6/30/98           LIMITED to $2,000 per 1040!!      (College, Graduate,Vocational)
                             ONLY if Hope is not claimed
                             AND if no Edu IRA funds are used !
                             Any amount used from EE exclusion reduces amounts applicable to the credit
                             CAN BE Used if only ONE course (no 50% requirement)
                             NO TIME LIMIT

                    1998 20% of first $5,000 up to $1,000                    only on expenses after 6/30/98
                    2003 20% of first $10,000 up to $2,000

              Phase outs begin at: and reduce $xx for each $??? of inc.
              Single         MFJ         MFS           HH

                 47,000      94,000       NA             47,000 starts
                 57,000 114,000           NA             57,000 ends
       CAN'T be claimed if dependent
                        If paid by third party, student is deemed to have paid
                        If student is dependent, parent is deemed to have paid


1082   "Above-the-line" deduction for education expenses
       Max deduction in 2006-2007                      4,000
            Phase outs begin at: and reduce $xx for each $??? of inc.
                           Single        MFJ         MFS          HH
       2006-2007             65,000      135,000      65,000      65,000




1304   Credit for the Elderly
       See calc - rarely used

       Age 65 or
       permanently disabled

1306   Adoption Credit
       10,960/ child
       10,960/ child w/ special needs ------        Beginning in 2003         credit can be claimed regardless of actual expenses paid or
       under 18                                       incurred in the year adoption becomes final.
       allowed in year finalized - see 1036
       may offset both the regular tax and alternative minimum tax liablilty
             Phase out occurs ratably between below amounts
                              Single       MFJ          MFS            HH

                               164,410      164,410       164,410    164,410 starts
                               204,410      204,410       204,410    204,410 ends


1311   Foreign Tax
        can take as a credit or deduction (sch a)
       Credit is usually better

1379   Gasoline tax credit               see form 4136

1307   Credit for Retirement Savings Contributions
        For contributions to 401k, 457 plan, traditional or Roth IRAs, SEP, SIMPLE, Tax-exempt or public school annuities, or
             voluntary after-tax contributions to a qualified retirement plan.
         Must meet the following requirements:                          Page 6
       1.   Must be at least 18 years old at end of tax year
                                                      9407c896-2feb-440f-81ca-4e626e6c82dd.xls
       2.   Must not be an eligible dependent of another
       3.   Must not be a full-time student for 5 or more months of the calendar year.
       4.   AGI cannot exceed the following amounts:
                               Single       MFJ          MFS           HH
                                 25,000       50,000       25,000      37,500




1400 AMT

       see rates on page 1

1425   Items
1430
       Installment sales ENDED 1997 !!
       Itemized ded
          Taxes
           Medical OK but must exceed 10% AMT AGI
           Misc. 2% itemized
           Tax exempt private activity bonds
1435   Incentive stock options
          FMV at date freely transferable - price paid


1700 Capital Gains
       1 year or more
1736      Sales prior to 5/06/03:
                    20% if 25% bracket or more
                    10% if 15% bracket or lower
          Sales after 5/05/03
                    15% if 25% bracket or more
                      5% if 15% bracket or lower

 733   Qualifying dividends received after 12/31/02 are now taxed at the reduced capital gains rates (5 and 15%)
       The following types of dividend income are specifically excluded from qualified dividend income:
           Dividends paid from a corporation exempt from tax under Code Secs. 501 and 521.
           Amounts that would be deductible under Code Sec. 591.
           Any dividend described in Code Sec. 404(k).
           Dividends paid under Code Sec. 246(c ) that fail to meet the revised holding period.
           The extent that the taxpayer is under a payment obligation under Code Sec. 246(c ).
       Special rules apply to Sec 306 stock


1701   Small business stock - 50% of gain excluded
        issued after 8/10/93
        held > 5 years

       may be rolled over tax FREE if
         other SB stock is purchased w/in 60 days
         Only C corp stock -- I think ?




1705   Residence

       500,000 exclusion           250,000 for single
       owned and occupied 2 of 5 years
       can do every 2 years
       Hardship (change in employment, health, other)
         may prorate $500k based on time (18 mos = $375k)

       Past depreciation (i.e. home office is taxed ... i.e. business % no longer excluded from exclusion if not used as HO for
       2 years before sale)

                                                                     Page 7
1721     Like Kind Exchanges                        9407c896-2feb-440f-81ca-4e626e6c82dd.xls
            List for exchange -- not sale
            Identify new property w/in 45 days of sale
            Settle w/in 180 days

1736     Depreciation on real estate recaptured at 25% tax rate

1752     Net capital loss limit
                      3,000
              Carry forward - unlimited

1779     Recaptures and 1231

         Depreciation recapture on 1250 capital gain taxed at 25%

         Installment sale of 1245 or accelerated 1250
         100% taxed at time of sale --- NOT over time
                      1245 personal property AND SINGLE PURPOSE HORTICULTURAL FACILITIES -
                             I.E. Mushroom Houses
                      1250 real estate

         1245 recapture 100% ordinary

         1250 ordinary = all accelerated if ACRS
                               = accelerated in excess of SL if MACRS


1967     Bond Discounts and Premiums
1956     MUST be amortized as an adjustment to the basis is required



       IRA's

2168     Regular
         $4000 for 2005 - 2007 $5,000 in 2008
             Must be under age 70 1/2
              Spouse w/ No Compensation may use other spouse's comp.
              Spouse who is not an active participant in a plan is now NOT ACTIVE if other spouse is
                          AS LONG as AGI under $150,000 (phase out $150 to $160)

       New catch-up priovision in law for individuals over 50 years of age…$1000 - 2006 & thereafter

2171             Phase outs (IF Active participant) begin at:
                                Single        MFJ          MFS          HH

                                 52,000       75,000            0       52,000 starts
                                 62,000       85,000       10,000       62,000 ends

2173     Non Deductible Contributions

2177     Distribution Requirements (Regular and Non Ded)
              Age 70
              Age 70 1/2, distribution must commence April 1, calendar year after person turns 70 1/2
              Remember if wait to 70 1/2 must take two that yr (4.1 and 12.31)

2178           NA Anymore -   Be careful with estate plan affects of choosing annual recalc method vs. initial calc

2180     Roth
             2005-2007--> 4,000 (2008+ --> 5,000)
             Age 50+ can make catch-up contributions…..       see above
              Not deductible
              Grows tax free
              Taken out tax free
              Can leave in and make contributions to beyond 70 1/2

                 Phase outs begin at: (EVEN IF A PARTICPANT IN A PENSION AT WORK)
                               Single      MFJ        MFS         HH

                                99,000      156,000             0       99,000 starts
                               114,000      166,000        10,000      114,000 ends

         Roth Rollover                                                   Page 8
                                                       9407c896-2feb-440f-81ca-4e626e6c82dd.xls
               Phase outs begin at:
                             Single          MFJ          MFS            HH

                               100,000       100,000              0     100,000

 898     Education
         $2,000 - after December 21, 2001
              Not deductible, total contribution to all Educational IRA's cannot exceed $2,000
              Grows tax free
              Taken out tax free
              Can leave in beyond 70 1/2
              Contributions can be made up to 4/15 of following year
              Can be used for Elementary, Secondary, or College education

               Phase outs begin at:
                             Single          MFJ          MFS            HH

                                95,000       190,000        95,000       95,000
                               110,000       220,000       110,000      110,000


 697     Qualified Tuition Programs
             Contributions on behalf of beneficiary are N/D and are subject to transfer tax rules.
             Can apply a special gift tax rule allowing you to claim a gift ratably over a five year period.
             --- enables you to contribute up to $55,000 for 2002 without paying any transfer taxes.
             Distributions are tax free as long as used for qualified expenses after:
             ----2002 for state plans
             ----2004 for private institutions
             Donor can redirect back to self or another child or cousin at any time




       Profit Sharing, Pension, 401K, SIMPLE, SEP
       Contribution limits

2101 Profit Sharing                                       2004          2005         2006         2007      2008         2009       2010
       % of comp                                            100%          100%         100%         100%      100%       100%       100%
       Max Comp                                           205,000       210,000      220,000      225,000 Adjusted for inflation
       Max Contribution                                    41,000        42,000       44,000       45,000 Adjusted for inflation
       Employee Max 401K Withhold                          13,000        14,000       15,000       15,500    15,500       15,500    15,500
       Catch-up Contributions                               3,000         4,000        5,000        5,000     5,000         5,000    5,000
     Pension Plan
       % of comp                                             100%         100%          100%        100%      100%       100%       100%
       Max Comp                                            205,000      210,000      220,000      225,000 Adjusted for inflation
       Max Contribution                                     41,000       42,000        44,000      45,000 Adjusted for inflation
       Employee Max 401K Withhold                           13,000       14,000        15,000      15,500    15,500       15,500    15,500
       Catch-up Contributions                                3,000        4,000         5,000       5,000     5,000         5,000    5,000
2184 SEP's                                                               Page 9
         % of comp                                            25%         25%          25%
                                                       9407c896-2feb-440f-81ca-4e626e6c82dd.xls 25%          25%       25%          25%
         Max Comp                                          205,000    210,000      220,000      225,000 Adjusted for inflation
         Max Contribution                                   41,000      42,000      44,000       45,000 Adjusted for inflation
                                                       ** May also make 401k contributions too.
2185 SIMPLE
       % of comp                                               3%           3%            3%          3%          3%       3%        3%
       Max Comp                                            300,000      333,333       333,333     350,000     350,000     350,000   350,000
       Max Contribution                                      9,000       10,000        10,000      10,500      10,500      10,500    10,500
       Catch-up Contributions                                1,500        2,000         2,500       2,500       2,500       2,500     2,500




       Estate and Gift Taxes:

       Gift Tax:
2905     For gifts of present interest:
         May gift up to $12,000 per year per donee not subject to gift tax
         Spouses can gift up to $24,000 per year per donee not subject to gift tax, if both spouses elect to split their gifts.

2905     Special rules apply to gifts of present interest to a donor's spouse who is not a US citizen.
         An annual exclusion of $120,000 is allowed to a spouse that would otherwise qualify for the marital deduction had the spouse been a US citizen

         Note: The annual exclusion is not allowed for gifts of future interests in property.

  42     Unified Transfer Tax Rate Schedule (Applies to estates and gifts)

                              Taxable      Taxable       Tax on         Tax
                              Amount       Amount        Amount         Rate
                               Over        Not Over

         for 2007                    0        10,000             0          18%
                                10,000        20,000         1,800          20%
                                20,000        40,000         3,800          22%
                                40,000        60,000         8,200          24%
                                60,000        80,000        13,000          26%
                                80,000       100,000        18,200          28%
                               100,000       150,000        23,800          30%
                               150,000       250,000        38,800          32%
                               250,000       500,000        70,800          34%
                               500,000       750,000       155,800          37%
                               750,000     1,000,000       248,300          39%
                             1,000,000     1,250,000       345,800          41%
                             1,250,000     1,500,000       448,300          43%
                             1,500,000     2,000,000       555,800          45%
                             2,000,000                     780,800          45%


         ** Note: For 2007 the 47% rate is reduced to 45%




2942     Generation-Skipping Transfer Tax

         Applies to transfers to persons two generations or more younger than the transferor.
         Taxed at a flat rate equal to the maximum applicable estate tax rate.
                                  2004         2005         2006         2007        2008            2009
                                   48%          47%         46%          45%         45%             45%


         Lifetime Exemption
                                         Gift Tax   Estate Tax GST Tax
                                  2002     1,000,000 1,000,000 1,100,000
                                  2003     1,000,000 1,000,000 1,120,000
                                  2004     1,000,000 1,500,000 1,500,000
                                  2005     1,000,000 1,500,000 1,500,000
                                  2006     1,000,000 2,000,000 2,000,000
                                  2007     1,000,000 2,000,000 2,000,000
                                  2008                            Page 10
                                           1,000,000 2,000,000 2,000,000
                        2009                3,500,000 3,500,000
                                1,000,000 9407c896-2feb-440f-81ca-4e626e6c82dd.xls
                        2010    1,000,000 ***N/A      ***N/A

*** Note: The estate and GST taxes are scheduled to be repealed in 2010 only, unless legislation is enacted otherwise.




                                                            Page 11
                                           PELLINI GOLD CORDES, LLC
                                                CERTIFIED PUBLIC ACCOUNTANTS
                                                   11 SOUTH CHURCH STREET
                                                 WEST CHESTER, PA 19382-3220
                   JAMES J. PELLINI, C.P.A., C.V.A.                                       DAVID PELLINI (1953-1992)
                   DAVID G. GOLD, C.P.A.                                                          --------------
                   JOHN F. CORDES, C.P.A.                                                           696-1177
                        --------------                                                           FAX 344-7144
                   JAMES C. PELLINI, P.A.                                                       AREA CODE 610
                   JUDITH B. VIRGILIO, C.P.A.                                             WEB SITE: www.pellinigold.com
                   WILLIAM D. BRADY, JR, C.P.A., C.V.A.

Summary of key tax law changes: Please check out our website for ongoing tax updates as part of our tax newsletter.
Prepared by GG, 9/27/2007

                                                2005          2006           2007            2008           2009           2010          2011
Income Tax Rates
       Single         Married
    over 349,700    over 349,700                 35.00%        35.00%         35.00%         35.00%         35.00%          35.00% 39.60%
 160,850-349,700 195,850-349,700                 33.00%        33.00%         33.00%         33.00%         33.00%          33.00% 36.00%
  77,100-160,850 128,500-195,850                 28.00%        28.00%         28.00%         28.00%         28.00%          28.00% 31.00%
   31,850-77,100  63,700-128,500                 25.00%        25.00%         25.00%         25.00%         25.00%          25.00% 28.00%
    7,825-31,850   15,650-63,700                 15.00%        15.00%         15.00%         15.00%         15.00%          15.00% 15.00%
       0-7,825        0-15,650                   10.00%        10.00%         10.00%         10.00%         10.00%          10.00% 15.00%

Expansion of 10% Bracket
Taxable income limit - MFJ                       14,600        15,100         14,000         14,000         14,000          14,000     NA
Taxable income limit - all
 others                                           7,300         7,550          7,550          7,550          7,550           7,550     NA

Capital Gains rates
Max CG rate                                           15%         15%            15%            15%            20%            20%           20%
CG rate for 10 & 15%
 brackets                                              5%             5%             5%             0%             0%             0%        0%

Dividends
Max dividends rate                        Ord Inc           Ord Inc        Ord Inc        Ord Inc        Ord Inc        Ord Inc        Ord Inc
Dividends rate for 10 & 15%
 brackets                                 Ord Inc           Ord Inc        Ord Inc        Ord Inc        Ord Inc        Ord Inc        Ord Inc

AMT Exemption
Single                                           40,250        42,500         42,500          42,500         42,500         42,500
Married                                          58,000        62,550         62,550          62,550         62,550         62,550

IRA Contribution Limits (Regular and Roth IRAs combined per individual)
Regular Contributions                      4,000    4,000       4,000                         5,000      increased by inflation
Catch-up Contributions                       500    1,000       1,000                         1,000           1,000        1,000

Pension Provisions
401K Contributions                               14,000        15,000         15,500        15,500        15,500            15,500
Pension Maximums                                 42,000        44,000         45,000      Adjusted for inflation
401k Catch-up Contributions                       4,000         5,000          5,000          5,000         5,000            5,000
Simple Plans                                     10,000        10,000         10,500        10,500        10,500            10,500
Simple Catch-up Contributions                     2,000         2,500          2,500          2,500         2,500            2,500

Child Tax Credit
Per qualifying child                              1,000         1,000          1,000          1,000          1,000           1,000




                                                                               Page 12
                                          PELLINI GOLD CORDES, LLC
                                              CERTIFIED PUBLIC ACCOUNTANTS
                                                 11 SOUTH CHURCH STREET
                                               WEST CHESTER, PA 19382-3220
                  JAMES J. PELLINI, C.P.A., C.V.A.                                   DAVID PELLINI (1953-1992)
                  DAVID G. GOLD, C.P.A.                                                      --------------
                  JOHN F. CORDES, C.P.A.                                                       696-1177
                       --------------                                                       FAX 344-7144
                  JAMES C. PELLINI, P.A.                                                   AREA CODE 610
                  JUDITH B. VIRGILIO, C.P.A.                                         WEB SITE: www.pellinigold.com
                  WILLIAM D. BRADY, JR, C.P.A., C.V.A.



                                               2005          2006          2007         2008        2009          2010       2011

Estate Tax
Maximum Tax Rate                                47.00%    46.00%    45.00%    45.00%                45.00% Repealed
Exemption Amount                              1,500,000 2,000,000 2,000,000 2,000,000             3,500,000 Repealed

Gift Tax
Maximum Tax Rate                                47.00%    46.00%    45.00%    45.00%                45.00%         35.00%
Exemption Amount                              1,000,000 1,000,000 1,000,000 1,000,000             1,000,000      1,000,000

Estate and Trust
 Income Tax Rates
                       over 9,750               35.00%        35.00%        35.00%      35.00%       35.00%        35.00%    39.60%
                      7,150-9,750               33.00%        33.00%        33.00%      33.00%       33.00%        33.00%    36.00%
                      4,700-7,150               28.00%        28.00%        28.00%      28.00%       28.00%        28.00%    31.00%
                      2,000-4,700               25.00%        25.00%        25.00%      25.00%       25.00%        25.00%    28.00%
                        0-2,000                 15.00%        15.00%        15.00%      15.00%       15.00%        15.00%    15.00%

Depreciation Provisions
 Sec 179 expense
   Deduction Amount                           105,000        108,000       125,000          Increased for inflation           25,000
   Investment limitation                      420,000        430,000       500,000          Increased for inflation          200,000
   SUV deduction




 Bonus Depreciation                            NA             NA            NA           NA          NA               NA

 Leasehold Improvements




Social Security Tax Base                        90,000        94,200        97,500 Increased for inflation

Standard Mileage Rates                9/1/05-12/31/05
  Business                                $    0.485 $         0.445   $     0.485 Increased for inflation
  Charitable                              $     0.14 $          0.14   $      0.14 Increased for inflation
  Medical/Moving                          $     0.15 $          0.18   $      0.18 Increased for inflation

Health Savings Accounts
                Single                    $      2,600   $     2,700   $     2,850 Pretax Contributions
                Family                    $      5,150   $     5,450   $     5,650 Pretax Contributions

Cafeteria Plans
                  Flexible spending accounts
                  Health premium only plans




                                                                             Page 13

				
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Description: Is a Home Equity Line of Credit Tax Deductable document sample