SOCIAL SECURITY AND MEDICARE TAX FOR 2005
The Social Security wage base for 2005 is $90,000. There is no wage base
limit for Medicare tax. The tax rate remains 6.2% for Social Security and
1.45% for Medicare tax.

HEALTH INSURANCE FOR SELF EMPLOYED INDIVIDUALS 

Deductions for health insurance for self-employed individuals is 100% for 2004.

MILEAGE

The standard business rate is 40.5 cents per mile, effective January 1, 2005. 

NEW BUSINESS EQUIPMENT

Beginning tax year 2003, you may immediately write off $100,000.00 worth of new business equipment, instead of depreciating it over a number of years.  Extended through 2007 with inflation adjustments detailed below:

        2004        $102,000.00

        2005        $105,000.00 

BUSINESS CREDIT

Extended through 2005 (research, work opportunity, welfare-to-work, renewable electricity production.)

SUV EXPENSE LIMIT

Set at $25,000.00

"S" Corporations

Can have 100 shareholders (up from 75), and family members count as one shareholder.

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Last modified: 19 May, 2005