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March 2005 Newsletter continued |
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EDITOR'S NOTE: Should you have questions with respect to the information contained in this newsletter or need help with your personal or business financial, tax and accounting activities, please call. |
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E-Mail Halliday@hallidaycpa.com |
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This newsletter offers factual and up-to-date information on the subjects discussed, but should not be regarded as a complete analysis of these subjects. No party assumes liability for any loss or damage resulting from reliance or use of this material. |
• Individual & partnership returns due in 45 days, April 15, 2005 |
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Businesses can now write-off up to $105,000 of assets purchased during 2005. In order to qualify for this deduction the business must have a profit for the year and the total dollar amount of assets purchased during the year must be less than $420,000. |
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Business expense deduction increases |
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IRS changes deposit rules for federal unemployment taxes (FUTA) |
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The threshold for quarterly deposits of FUTA tax will rise from $100 to $500 for 2005. This means you are not required to make a FUTA tax deposit during the year unless your liability exceeds the $500 threshold. Thus, most companies with fewer than nine employees will have to make only one deposit of FUTA tax for 2005. |
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IRS closes door on FICA exemptions for medical residents |
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Under newly issued final regulations, effective March 31, 2005, hospitals cannot claim residents are students exempt from Social Security and Medicare taxes (FICA). Also, teaching hospitals will no longer qualify as educational institutions eligible for refunds of FICA taxes paid.
However, schools get more leeway on other types of student workers. The final rules are more lenient in allowing part-time students to qualify for the exemption. |