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.