HALLIDAY & COMPANY is interested in helping you achieve your individual and business financial goals.  Understanding basic financial and tax concepts will help prevent costly mistakes and allow you to operate as efficiently as possible.  For this reason, we publish  “ACCOUNT-ABILITY” as a resource of helpful information, which we hope, will benefit you personally and/or as a business owner.

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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.

HAPPY HOLIDAYS!

 December 2004 Continued

At this Holiday Season, our thoughts turn gratefully to those who have made our progress possible.  Thank you and warmest wishes for the Holiday Season and the New Year.

Year 2005 Standard Mileage Rates

Tax break for heavy SUV’s has been reduced

The standard mileage rate is available to both employees and self-employed persons in computing deductions for car expenses.  A taxpayer may use the standard mileage rate per mile as a deduction rather than keeping tract of actual vehicle expenses.

 

Summary of year 2005 standard mileage rates (Note: the charitable rate did not increase for 2005):

 

Business 40.5 cents per mile

Charitable 14 cents per mile

Medical/ moving 15 cents per mile

 

 

The ability to write off an SUV in the year of purchase has finally come to an end.  Buyers of SUVs with loaded-vehicle ratings over 6,000 pounds can no longer expense up to $102,000 of the cost in the year of purchase.  The new law signed by President Bush caps the amount that can be expensed at $25,000 for SUVs with loaded weights between 6,000 and 14,000 pounds that are put in use after October 22, 2004.