We have made every attempt to include the most frequently asked questions. If you have a question that you
would like to see included, please contact us.
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What is the maximum "Section 179" deduction for
2004 and 2005?
- 2004 = $100,000
- 2005 = $105,000
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What are the standard automobile mileage rates for
2005?
- Business mileage rate = 40.5¢ per mile
- Charitable mileage rate = 14¢ per mile
- Medical mileage rate = 15¢ per mile
- Moving mileage rate = 15¢ per mile
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What is the maximum annual earned income limit for Social Security benefits?
- Before reaching full retirement
age: $12,000; benefits reduced $1
for each $2 earned
- In the year you reach full
retirement age (but before you
reach retirement age): $31,800 (or
$2650 per month);
benefits reduced $1 for each $3
earned
- 65 or older: No Limit
- For persons reaching retirement
age from 2005 through 2016,
standard retirement age will be
66.
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What are the
2005 individual deferral limitations for retirement plans?
- 401(k) contributions = $14,000
plus $4,000 for participants 50
years of age or older
- SIMPLE contributions = $10,000
plus $4,000 for participants 50
years of age or older
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What is the Social Security (FICA) limit for
2005?
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How can you protect your privacy on line?
- Look for privacy policies on the Web
- Use a separate e-mail account for personal mail
- Teach children that giving out personal information online is like giving it to strangers
- Clear your memory cache after browsing
- Make sure that online forms are secure before sending personal information on the Web
- Reject unnecessary cookies
- Use anonymizers while browsing on the Web
- Encrypt your e-mail
- Use anonymous remailers
- Use common sense
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How long should records be retained? (reproduced from The Practical Accountant, 04/96) |
Accounting Records |
Annual financial statements, journals, tax returns and worksheets, depreciation schedules, general and private ledgers, fixed asset purchases,
audit reports |
Permanent |
Accounts payable and accounts receivable |
10 years |
Sales records, expense records, loan schedules, clients' invoices |
7 years |
Bank Records |
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Statements |
7 years |
Canceled checks |
7 years (permanent for real estate purchases) |
Loan records |
7 years from last payment |
Computer Records
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Backups of all business records |
Permanent |
Corporate Records |
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Including but not limited to: Board minutes, incorporation documentation, by-laws, licenses, contracts, leases, mortgages,
trademarks, patents, shareholder records, stock and bond transactions, insurance policies and records, partnership agreements, legal documents and correspondence, and annual reports |
Permanent |
Personnel Records |
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Benefit, pension, profit sharing plans |
Permanent |
Payroll records |
7 years |
Employee contracts and records, including performance reviews, and attendance records |
7 years after termination |
Employment applications, resumes, salary rates and changes |
3 years |
Real Property Records |
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Purchases, deeds, bills of sale, construction, appraisals, improvements, blueprints, and plans |
Permanent |
Miscellaneous |
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Company publications including newsletters, brochures, bulletins to staff, customers and clients, and interoffice correspondence
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7 years |
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