2007 Funeral Tax Changes Reminders
IFSA Thanks Our
Limit on Contributions to Funeral Trusts. For a contract entered into during calendar year 2007 for a qualified funeral trust, as defined in section 685 of the Internal Revenue Code, the trust may not accept aggregate contributions by or for the benefit of an individual in excess of $8,800.
Who Support IFSA and Idaho’s Finest Funeral Directors!
A.J. Distribution, Inc. Terry & Linda Porter
Reduction of Maximum Estate and Gift Tax Rate. For estates of decedents dying, and gifts made, after 2006, the maximum rate for the estate tax and the gift tax for 2007, 2008, and 2009 is 45%.
Aurora Casket Company John & Dixie Platt
Community Tissue Services Sally Kurdy
Deaton Kennedy Jill Stevenson-Moreland
Federated Insurance Co. Humberto Cruz
Great Western Insurance Co. Chad Iverson
(800) 621-5688 (801) 557-4094
Hillcrest Memorial Gardens
Kelco Supply Company Sandy Pearson
Matthews Cremation Division Guy Esposito
(800) 327-2831 x 142
Memorial Monuments & Vaults Robert L. Chandler
Midwest Casket Company
National Hall of Records
Be Aware of the 2007 Tax Changes
There are a number of changes for tax year 2007 that small business owners need to take into account.
Increased Section 179 limits. The maximum Section 179 deduction for property placed in service in 2007 is $125,000. Under a new law recently signed by the president, Section 179 expensing allowances will double to $250,000 for 2008.
Domestic production activities deduction. This deduction percentage increases from 3% to 6%.
Self-employment tax. The maximum amount of net earnings subject to the Social Security part of the self-employment tax is $97,500. All net earnings of at least $400 are subject to the Medicare part of the tax.
Social Security and Medicare taxes. The maximum amount of wages subject to the Social Security tax is $97,500. There is no limit on the amount of wages subject to the Medicare tax.
Standard mileage rate. The standard mileage rate for the cost of operating your car, van, pickup, or panel truck is 48.5 cents per mile for business miles driven.
United Heritage Life Ins. Co. Patty W. Klingberg
Vantage Products Marty Flynn
Wells Fargo Master Trust
Ric’s Capital City Florist Ric Martindale
SinoSource, International Jess Hunsaker
(801) 589-0222 firstname.lastname@example.org
The Dodge Company Larry Whitaker
(866) 646-5428 Bill Martin (425) 432-6438
Qualified transportation fringe benefit. The monthly limitation for the aggregate fringe benefit exclusion amount for transportation in a commuter highway vehicle and any transit pass is $110. The monthly limitation regarding the fringe benefit exclusion amount for qualified parking is $215.
Work Opportunity Credit. After December 31, 2006, the welfare-to-work credit was combined with the work opportunity credit. Use Form 5884, the Work Opportunity Credit, to claim a credit for an employee who begins work after that date. Ex-felons who begin work after December 31, 2006, are no longer required to be a member of a low-income family. Food stamp recipients must be at least age 18 when hired but not age 40 or older.
For the latest tax information, go to www.irs.gov/businesses.
WMS Financial Group Don Williams
Source: US Chamber Magazine (March 2008) http://www.uschambermagazine.com/content/0803_8c