X hits on this document





4 / 12

Page 4

IFSA Newsletter

2007 Funeral Tax Changes Reminders

IFSA Thanks Our

Allied Members

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

(800) 426-6555

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

(801) 485-5802

Community Tissue Services Sally Kurdy

(208) 389-2194

Deaton Kennedy Jill Stevenson-Moreland

(360) 576-7820

Federated Insurance Co. Humberto Cruz

(800) 527-5999

Great Western Insurance Co. Chad Iverson

(800) 621-5688 (801) 557-4094

Hillcrest Memorial Gardens

(208) 459-4949

Kelco Supply Company Sandy Pearson

(800) 328-7720

Matthews Cremation Division Guy Esposito

(800) 327-2831 x 142

Memorial Monuments & Vaults Robert L. Chandler

(208) 888-2665

Midwest Casket Company

(801) 328-9849

National Hall of Records

(888) 667-6467

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

(208) 475-0970

Vantage Products Marty Flynn

(800) 481-3303

Wells Fargo Master Trust

(208) 393-5449

Ric’s Capital City Florist Ric Martindale

(208) 377-0120

SinoSource, International Jess Hunsaker

(801) 589-0222 jessnhunsaker@msn.com

The Dodge Company Larry Whitaker

(866) 646-5428 Bill Martin (425) 432-6438

Tom Staab

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

(303) 843-0782

Source: US Chamber Magazine (March 2008) http://www.uschambermagazine.com/content/0803_8c

Document info
Document views32
Page views32
Page last viewedTue Oct 25 05:12:46 UTC 2016