December 2004 Newsletter continued

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.

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.

 4th quarter corporate estimated tax payments due    December 15, 2004

 Individual estimated state of Utah tax prepayments due on or before December 31, 2004.

But you can still get a large write-off before year-end by taking advantage of the $25,000 write-off, bonus depreciation, which expires 12-31-2004, and regular depreciation.  For example, a $60,000 SUV used 100% for business could claim a total write off of $46,000 in 2004.

Retirement plans and social security increases for 2005

The 401 (k) maximum rises to $14,000, those born prior to 1954 can contribute an additional $4,000.  The SIMPLE maximum rises to $10,000, $12,000 if born before 1954.  The payin ceiling for defined-contribution plans, Keoghs and profit sharing plans is $42,000 for 2005.

 

Social security benefit checks will be 2.7% larger in 2005.  The earnings limits for beneficiaries will rise as well. Individuals between 62 and 65 and six months can make $12,000.  Individuals who will be age 65 and six months in 2005 can earn $31,800 until they reach that age.  There is no cap for individuals over age 65 and six months.