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					                        Sarah, Robby, Tonya And
                      Allison Wish For You And
                      Your Family A Most Joyful
                          Christmas And Holiday
                       Season. There Is No More
  Appropriate Time To Say “Thank You” And To
   Express To Our Friends, Old And New, Warm
     Season’s Greetings And Best Wishes For The
         Coming Year. We Encourage You To Be
Especially Mindful of God’s Blessings During This
                                   Special Season.
                                                     DOLLARS
   Happy Holidays!
                                                           SENSE
                                                         December 2005


       Adams & Co., P.C.                                   A publication from

         Certified Public Accountants
               Sarah A. Adams, CPA
                                                     Adams & Co., PC
            E. Robert Adams, Jr., CPA                 Certified Public Accountants
                   P.O. Box 880
        226 W. Main Street (beside Library)            (Located beside the Russell
               Lebanon, VA 24266                           County Library on
                  276-889-4950
                Fax: 276-889-4449                       Main Street in Lebanon)


     Feel free to share this newsletter with
          family, friends and colleagues!
                            May the star of
                           Bethlehem shine                                                                                         Non-Employee Compensation:                                   Do
                           brightly on you                                                                                           you pay
                           and your family                                                                                         someone who is not an employee for work done
                            this Christmas                                                                                           in your home or
                                season!                                                                                            business? Pay them over $600? Be sure you
                                                                                                                                     know regulations for
As a result of Higher Gas Prices…                                                                                                  required information return reporting.
the IRS has issued new Standard Mileage Rates for 2005.

                    Jan 1 – Aug 31    Sept 1 – Dec 31                                                                                                    Call Sarah for QuickBooks sales, training
                                                                                                                                                           and support --- easy and affordable.
    Business               40.5¢           48.5¢
    Charity                 14¢             14¢              Charitable Contributions…
    Medical                 15¢             22¢              suspension of deduction limit! Generally, charitable
                                                             contributions are limited to a % of your AGI and subject                                                      2005          2006
                                                             to the itemized deductions limitation, but not                          Cars – depreciation limit            $ 2960        $2960
Did you know that the IRS likes computer-                    contributions made between 8/27/05 and 1/1/06. No                       Trucks –    “          “             $ 3260        $3260
generated tax returns:                                       limits! Give generously and deduct it! Also, new rules on
                                                                                                                                     Standard Mileage – Business                         44.5¢
 They contain fewer math mistakes                           contributions of cars and boats. Call us!
                                                                                                                                     Standard Mileage - Medical          See prev.        18¢
 They are less likely to omit necessary                                                                                                                                   table
                                                                                                                                     Standard Mileage - Charity                           14¢
   information                                                                                                                       IRA Contribution                     $4000         $4000
 They are more legible than if written by hand,                                         **FARMERS**                                 Simple Plan Contribution             $10000        $10000
   and thus easier to process                                                                                                        401(k) Contribution                  $14000        $15000
                                                             Tobacco Buyout… 10 year program to                                      Annual Gift Limitation                $ 11K         $ 12K
FAST REFUNDS                                                 buy quota holders out at $7/lb and $3/lb,
                                                                                                                                     Section 179 limits                   $102K          $105K
Filing electronically means you’re likely to get your
                                                             some income subject to SE tax, other income
refund-if direct deposited into your bank account-                                                                                 Virginia Updates:
usually within 7-10 days of the e-file. We’ve been           capital gains. Call us for help in this area.
providing E-file services since 2000. Let your                                                                                        Payment extension penalty increases from .5%/mth to 2%
                                                             Undyed Fuel Credit …new law… can now be taken                                                  st
                                                                                                                                   in 2005– pay tax by May 1 to avoid!
friends and colleagues know if you’ve benefited
                                                             directly by farmers (effective 9/30/05)                                Neighborhood Assistance credit increases to $50K for
from this service.
                                                                                                                                   2005.
                                                             Qualified Domestic Production Deduction –
          Catastrophic Losses               – don’t let it   new deduction for 2005. Details complicated. Available to
          happen to you!                                     non-farmer “producers” as well.                                       WEBSITES:                        “A person doesn’t
a       Are you keeping offsite backups of your                                                                                    www.adamscpas.com                know how much he
data? Do you have a photo catalogue inventory                Timber… new law allows for capital gain treatment on sales            www.irs.gov                      has to be thankful
of your fixed assets? Being prepared for a fire                                                                                    www.tax.virginia.gov
or other catastrophe is worth it. Call us for our                                                                                                                   for until he has to
                                                             HURRICANE KATRINA
services in these areas.                                     There are many deductions that can be taken for both the victims      Outgrowing your                  pay taxes on it.”
                                                             of the disaster and those that helped to aid in the rebuilding        accounting system?                          Ann Landers
Energy credits (2006) and Hybrid vehicle                     efforts (housing displaced individuals, mileage rate $.34,            We are now Sage business consultants (MAS90,
deduction (NOW) available for energy-conscious               contribution of inventories by businesses, retirement distributions
taxpayers!                                                                                                                         MAS200). See www.sagesoftware.com for more
                                                             etc.) For more information, please contact us.
                                                                                                                                   details.

                                                                                                                                   Children:   If your child is employed, most likely he/she can fill
                                                                                                                                   out a W-4 and VA-4 to indicate exemption from withholding.
Avoid having to file a tax return just to get a refund! Generally
he/she can earn up to $5000 without having taxable income.

				
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