>*

tax tips

Rates & Numbers

Prime rate and CPI-U
Prime rate:                      5.0% (effective April 30, 2008)
May 2008 CPI-U ( 1. )      4.2% (2.)
1. Covers all goods/services purchased by urban consumers.
2. Goods costing $1,000 in May 2007 cost $1042 in May 2008

June 2008 CPI-U:                       Available July 16, 2008
For the latest CPI-U and general information        202-691-6994
For other CPI-U indices and more details              202-691-7000   

200% GDS nonfarm MACRS property rates  
                                 5-year* property                  7-year** property
Year 1

20.00%

14.29%
Year 2

32.00%

24.49%
Year 3

19.20%

17.49%
Year 4

11.52%

12.49%
Year 5

11.52%

8.93%
Year 6

5.76%

8.92%
Year 7

8.93%
Year 8

4.46%
* Autos, trucks, computers/peripherals, typewriters,
   calculators, etc.
** Furniture and fixtures, desks, files, etc.
Note: The IRS includes cellular phones as listed property, but does not give a number of years, so most firms take a Sec. 179 deduction.

IRS depreciation limits: Vehicles put in service in 2008  
                         Passenger autos           Light SUVs, Pickups, Vans*
 
 

50% bonus
dep.

No bonus
or used

50% bonus
dep.

No bonus
or used
1st Year

$10,960

     $2,960   $11,160

$3,160
2nd Year

4,800

     4,800   5,300

5,100
3rd Year

2,850

     2,850   3,150

3,050
4th/after

1,775

     1,775   1,875

1,875
* 6,000 lbs., or less, built on truck chassis, and not specially modified

Latest changes in federal per diems within the U.S.
 www.irs.gov/publications/p1542/ar01.html#d0e22

Latest changes in per diems outside the U.S.
 aoprals.state.gov/content.asp?content_id=184&menu_id=78

Payroll rates and bases      2007                  2008
 Soc. Sec. and Medicare rates     6.20%/1.45%           6.20%/1.45%
Social Security wage limit           $97, 500                   $ 102,000
Medicare wage limit                     Unlimited               Unlimited
FUTA taxable wage base              $7,000                     $7000
FUTA rate                                         6.2%                        6.2%
FUTA maximum credit                  5.4%                        5.4%
Minimum FUTA deposit rate       0.8%                        0.8%

Mileage                  2007                          2008
Business*

48.5˘/mile

50.5˘/mile
Relocation

20.0˘/mile

19.0˘/mile
Medical

20.0˘/mile

19.0˘/mile
Charitable Rate

14.0˘/mile

14.0˘/mile

* Can be used only if taxpayer owns/leases a passenger auto, van, pickup, or panel truck not for hire (eg., as a taxi) that was not depreciated under ACRS, MACRS or Sec. 179 in earlier years.

Qualified retirement plan limits    2007           2008

Pretax contributions for 401(k) & SEP plans & 403(b) annuities  $   15,500  $   15,500
Workers over 50 (catch-up)    $     5,000 $     5,000
Sec. 415(b)(1)(A) defined benefit
plan annual benefit ceiling 		$ 180,000 $ 185,000
Combined employer/employee pay-in limits all defined cont. plans $   45,000 $   46,000
Annual compensation  limit under Sec. 401(a)(17) and Sec. 404(1) Sec. 408(k)(3)(C) IRA, SEP or SIMPLE plan limits $ 225,000 $ 230,000
SIMPLE pretax contribution limit  $   10,500  $   10,500
Workers over 50 (catch-up)  $     2,500  $     2,500

Key phone numbers
> IRS forms and publications                            800-829-3676
> Retiree benefit status check                         800-772-1213


Applicable Federal Rates (AFR) for June 2008

Under IRC§ 1274, if your firm extends a loan due more than 6 months after a customer purchased or exchanged an item and there is no stated interest rate, the IRS imputes one. The IRS imputed interest rates for May 2008 are as follows:

 

Annual

Semiannual

Quarterly

Monthly
Short-term:
3 years or less

2.08%

2.07%

2.06%

2.06%
Mid-term: Over 3 but not more than 9 years

3.20%

3.17%

3.16%

3.15%
Long-term:
Over 9 years

4.46%

4.41%

4.39%

4.37%


Tax Calendar

Due
date		 Day of
week		 Deposit FICA and FITW  for wages paid for the period from
July 15 Tues. Monthly due date for June liabilities
July 16 Wed.. July 9 - 11                     Fri.
July 18 Fri. July 12 - 15                   Tues.
July 23 Wed. July 16 - 18                   Fri.
July 25 Fri. July 19 - 22                   Tues.
July 30 Wed. July 23 - 25                   Fri.
Aug. 1 Fri. July 26 - 29                   Tues.
Aug. 6 Wed. July 30 - Aug. 1            Fri.
Aug. 8 Fri. Aug. 2 - 5                      Tues.
Aug. 11 Mon. Form 4070 due from tipped employees
Aug. 13 Wed. Aug. 6 - 8                      Fri.

*  If banks are closed statewide because of a state holiday,
    the deposit date is delayed until the next banking day.
*  Deposits of $ 100,000 or more must be made within one
    banking day following the day the tax liability is incurred.

 © The General Ledger

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Leslie Rose, Business Manager
The Natural Childbirth & Family Clinic


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