Table of Contents

• Publication 553 - Introductory Material
  • Introduction
• 1. Tax Changes for Individuals
  • 2004 Changes
    • Credit for Child and Dependent Care Expenses for 2002 and 2003
    • Higher Taxable Income Limits for Using Form 1040A, 1040EZ, and TeleFile
    • Tuition and Fees Deduction
    • Distributions From Privately- Sponsored Qualified Tuition Programs (QTPs) May Be Tax Free
    • Income Limits Increased for Hope and Lifetime Learning Credits
    • Income Limits Increased for Reduction of Education Savings Bond Exclusion
    • Student Loan Interest Deduction
    • Student Loan Repayment Assistance May Be Tax Free
    • Educator Expenses Deduction Extended
    • Health Savings Accounts (HSAs)
    • Archer Medical Savings Accounts (MSAs) Extended
    • Unlawful Discrimination Claims
    • Exclusion of Gain Not Allowed on Home Acquired in Like-Kind Exchange
    • State and Local General Sales Tax Deduction
    • Contributions for Relief of Tsunami Victims
    • Charitable Contributions of Patents and Other Intellectual Property
    • Charitable Contributions of Property Over $500,000
    • Exemption Amount Increased
    • Standard Deduction Amount Increased
    • Limit on Itemized Deductions Increased
    • Investment Income of Child Under Age 14
    • Dependent Care Benefits
    • Additional Child Tax Credit Expanded
    • Health Coverage Tax Credit
    • Earned Income Credit Amounts Increased
    • Electric and Clean-Fuel Vehicles
    • Straddle Rules
    • Rural Mail Carriers
    • Standard Mileage Rate
  • 2005 Changes
    • Uniform Definition of a Qualifying Child
    • Section 1202 Exclusion Increased for Gain from Empowerment Zone Business Stock
    • Charitable Contributions of Cars, Boats, and Aircraft
    • Exemption Amount Increases
    • Standard Deduction Amount Increases
    • Earned Income Credit (EIC) Amounts Increase
    • Standard Mileage Rate
    • Social Security and Medicare Taxes
• 2. Tax Changes for Businesses
  • 2004 Changes
    • Weather-Related Sales of Livestock Reported After 2002
    • Meal Expenses When Subject to Hours of Service Limits
    • Contributions for Relief of Tsunami Victims
    • Charitable Contributions of Patents and Other Intellectual Property
    • Corporate Contributions of Property Over $5,000
    • Corporate Contributions of Computer Technology and Equipment
    • Deduction for Costs of Qualified Film or Television Productions
    • Business Start-Up Costs and Organizational Costs
    • Depreciation and Section 179 Expense
    • Section 179 Deduction Limit for Sport Utility and Certain Other Vehicles
    • Modification of Depreciation Allowance for Aircraft
    • Liberty Zone Leasehold Improvement Property
    • Special Placed in Service Rule for Certain Property Subject to Syndication
    • Recovery Period for Depreciation of Certain Leasehold Improvements and Restaurant Property
    • Depreciation of Tax-Exempt Use of Computer Software Subject to a Lease
    • Figuring Depreciation for Property Acquired in a Like-kind Exchange or Involuntary Conversion
    • Expensing EPA Sulfur Regulations Costs
    • Expensing Reforestation Costs
    • Percentage Depletion
    • Environmental Cleanup Cost Deduction
    • Limit on Deduction of Certain Travel, Meals, and Entertainment Expenses for Officers, Directors, or More-Than-10% Shareholders
    • Income Averaging for Farmers and Fishermen
    • Income From Qualifying Shipping Activities
    • Low Sulfur Diesel Fuel Credit
    • Credit for Electricity and Refined Coal Produced From Qualified Energy
    • Extension of Research Credit
    • Work Opportunity Credit and Welfare-to-Work Credit Have Been Extended
    • Self-Employment Tax
  • 2005 Changes
    • Section 1202 Exclusion Increased for Gain from Empowerment Zone Business Stock
    • Capital Gain Treatment Applies to Outright Sales of Timber
    • Deduction for Domestic Production Activities
    • Electing S Corporation Status
    • Increase to Withholding on Supplemental Wage Payments Exceeding $1,000,000
    • Employment Taxes on Employee Stock Options
    • Self-Employment Tax
    • Increase to FUTA Tax Deposit Requirement
• 3. IRAs and Other Retirement Plans
  • 2004 Changes
    • Individual Retirement Arrangements (IRAs)
    • Thrift Savings Plan (TSP)
    • Qualified Plans
    • Simplified Employee Pensions (SEPs)
    • SIMPLE Plans
    • 403(b) Plan Changes
  • 2005 Changes
    • Modified AGI Limit for Traditional IRAs Increases
    • Traditional IRA Contribution and Deduction Limit
    • Roth IRA Contribution Limit
    • Qualified Plans
    • Simplified Employee Pensions (SEPs)
    • 403(b) Plan Changes
• 4. Exempt Organizations
  • 2005 Changes
    • Acknowledgement Required for Car Donations
• 5. Estate and Gift Taxes
  • 2004 Changes
    • Estate Tax Applicable Exclusion Amount Increased
    • Annual Exclusion for Gifts Increased
    • Maximum Estate and Gift Tax Rate Reduced
    • Credit for State Death Taxes Reduced
    • Generation-Skipping Transfer (GST) Exemption Increased
    • Qualified Family-Owned Business Interest Deduction Repealed
  • 2005 Changes
    • Changes to State Death Taxes
• 6. Excise Taxes
  • Changes Effective for the Fourth Quarter of 2004
    • Vaccines
    • Bows
    • Repeal of Arrow Tax
  • Changes Effective for the First Quarter of 2005
    • Definition of Off-Highway Vehicle
    • Air Transportation Taxes
    • Dyed Diesel Fuel Used in Trains
    • Dyed Diesel Fuel Used in Certain Intercity or Local Buses
    • Inland Waterways Fuel Use Tax
    • Alcohol and Biodiesel Fuels
    • Fishing Tackle Boxes
    • Electric Outboard Motors
    • Highway-Type Tires
    • Aviation-Grade Kerosene
    • Gasoline Registered Ultimate Vendors
  • Change Effective for the Second Quarter of 2005
    • Arrow Shafts
  • Changes Effective for the Third Quarter of 2005
    • Vaccines
    • Heavy Highway Vehicle Use Tax (Form 2290)
• 7. Foreign Issues
  • 2004 Changes
    • Expatriation of Individuals
    • Minimum Taxable Income Limit for Expatriated Entities and Related Persons
    • U.S. Possessions Income
    • Income Effectively Connected With a U.S. Trade or Business
    • Withholding on Payments to Foreign Persons
    • Foreign Tax Credit — Taxes on Income or Gain
    • Foreign Tax Credit—Modified Carryback and Carryover Periods
  • 2005 Changes
    • Repeal of Extraterritorial Income Exclusion
    • Withholding on Payments to Foreign Persons
    • Translation of Foreign Taxes
    • Alternative Minimum Tax Foreign Tax Credit (AMTFTC) 90% Limit Repealed
    • Residents of Japan
• 8. How To Get Tax Help
• Index