Table of Contents

• Publication 553 - Introductory Material
  • Introduction
    • Casualty and theft losses.
    • Extended tax deadlines.
• 1.   Tax Changes for Individuals
  • 2005 Changes
    • New Definition of a Qualifying Child
    • Dependency Exemption
    • Special Rule for Divorced and Separated Parents
    • Head of Household Filing Status
    • Qualifying Widow(er) Filing Status
    • New Form 8901
    • Earned Income Amount for Additional Child Tax Credit
    • Social Security and Medicare Taxes
    • Income Limits Increased for Reduction of Education Savings Bond Exclusion
    • Increase in Limit on Long-Term Care and Accelerated Death Benefits Exclusion
    • Rules for California Domestic Partners
    • Increased Section 1202 Exclusion for Gain From Empowerment Zone Business Stock
    • Health Savings Account (HSA) Deduction Limits Increased
    • Archer MSA Deduction Limits Increased
    • Income Limits Increased for Student Loan Interest Deduction
    • Standard Deduction Amount Increased
    • Limit on Itemized Deductions Increased
    • Exemption Amount Increased
    • Alternative Minimum Tax (AMT)
    • Income Limits Increased for Hope and Lifetime Learning Credits
    • Adoption Benefits Increased
    • Earned Income Credit (EIC) Amounts Increased
    • Standard Mileage Rate
    • Temporary Suspension of Limits on Charitable Contributions
    • Contributions of Cars, Boats, and Airplanes
    • Deductible Long-Term Premium Care Limits Increased
    • Expenses of Whaling Captains
    • Automatic 6-Month Extension
  • 2006 Changes
    • Social Security and Medicare Taxes
    • Income Limits Increased for Reduction of Education Savings Bond Exclusion
    • Increase in Limit on Long-Term Care and Accelerated Death Benefits Exclusion
    • Investment Income of Child Under Age 14
    • Health Savings Account (HSA) Deduction Limits Increased
    • Archer MSA Deduction Limits Increased
    • Standard Deduction Amount Increases
    • Limit on Itemized Deductions Increased
    • Phaseout of Reductions of Personal Exemptions and Itemized Deductions
    • Exemption Amount Increases
    • Alternative Minimum Tax (AMT)
    • Limits Increased for Hope and Lifetime Learning Credits
    • Residential Energy Credits
    • Electric and Clean-Fuel Vehicles
    • Alternative Motor Vehicle Credit
    • Alternative Fuel Vehicle Refueling Property Credit
    • Adoption Benefits Increased
    • Earned Income Credit (EIC) Amounts Increased
    • Earned Income Amount for Additional Child Tax Credit
    • Standard Mileage Rate
    • Qualified Contributions Expired
    • Deductible Long-Term Care Premium Limits Increased
    • Expired Tax Benefits
• 2.   Tax Changes for Businesses
  • 2005 Changes
    • Self-Employment Tax
    • Depreciation and Section 179 Deduction
    • Domestic Production Activities Deduction
    • Recapture of Section 197 Amortization
    • Outright Sales of Timber by Landowners
    • Exception to Oil Depletion Deduction for Independent Producers
    • Deduction for Qualified U.S. Refineries
    • Research Credit Expanded
    • Investment Credit Expanded
    • Distilled Spirits Credit
    • Nonconventional Source Fuel Credit
    • Biodiesel and Renewable Diesel Fuels Credit
    • Renewable Electricity, Refined Coal, and Indian Coal Production Credit
    • Qualified Railroad Track Maintenance Credit
    • Electing S Corporation Status
    • Nonqualified Deferred Compensation Plans
    • Fringe Benefit Parking Exclusion and Commuter Transportation Benefit
    • Increase to FUTA Tax Deposit Requirement
    • Increase to Withholding on Supplemental Wage Payments Exceeding $1,000,000
    • Form 7004 Revised
  • 2006 Changes
    • Self-Employment Tax
    • Depreciation and Section 179 Deduction
    • Meal Expenses When Subject to Hours of Service Limits
    • Deduction for Energy Efficient Commercial Building Property
    • Work Opportunity Credit and Welfare-to-Work Credit Expired
    • Alternative Motor Vehicle Credit
    • Alternative Fuel Vehicle Refueling Property Credit
    • Energy Efficient Home Credit
    • Investment Credit for Energy Property Expanded
    • Renewable Electricity, Refined Coal, and Indian Coal Production Credit
    • Energy Efficient Appliance Credit
    • Clean Renewable Energy Bond Credit and Gulf Bond Credit
    • Fringe Benefit Parking Exclusion
    • Withholding Income Tax on Wages of Nonresident Aliens
    • Annual Employment Tax Filing for Small Employers
    • Expired Tax Benefits
• 3.   IRAs and Other Retirement Plans
  • 2005 Changes
    • Individual Retirement Arrangements (IRAs)
    • Qualified Plans
    • Simplified Employee Pensions (SEPs)
    • SIMPLE Plans
    • 403(b) Plan Changes
    • Catch-up Contributions to Thrift Savings Plan (TSP)
  • 2006 Changes
    • Individual Retirement Arrangements (IRAs)
    • Qualified Roth Contribution Programs
    • Qualified Plans
    • Simplified Employee Pensions (SEPs)
    • SIMPLE Plans
    • 403(b) Plan Changes
    • Catch-up Contributions to Thrift Savings Plan (TSP)
• 4.   Exempt Organizations
  • 2005 Changes
    • Acknowledgment Required for Contributions of Cars, Boats, and Airplanes
    • Notice of Income From Donated Intellectual Property
• 5.   Estate and Gift Taxes
  • 2005 Changes
    • Annual Exclusion for Gifts To Spouses Increased
    • Maximum Estate and Gift Tax Rate Reduced
    • Changes to State Death Taxes
  • 2006 Changes
    • Estate Tax Applicable Exclusion Amount Increased
    • Annual Exclusion for Gifts Increased
    • Maximum Estate and Gift Tax Rate Reduced
    • Generation-Skipping Transfer (GST) Exemption Increased
• 6.   Excise Taxes
  • Heavy Highway Vehicle Use Tax (Form 2290)
    • Repeal of Installment Agreement
  • Changes Effective for the Third Quarter of 2005
    • Taxable Tires
  • Changes Effective for the Fourth Quarter of 2005
    • Gas Guzzler Tax
    • Fishing Rods and Fishing Poles
    • Truck, Trailer, and Semitrailer Chassis and Bodies, and Tractors
    • Kerosene for Use in Aviation
    • Undyed Diesel Fuel and Undyed Kerosene, Use on a Farm
    • Leaking Underground Storage Tank (LUST) Tax
  • Changes Effective for the First Quarter of 2006
    • Air Transportation Taxes
    • Arrow Shafts
    • Renewable Diesel
    • Diesel-Water Fuel Emulsion
    • Taxable Tires
    • Claims for Exempt Sales of Fuel by Registered Credit Card Issuers
  • Changes Effective for the Second Quarter of 2006
    • Reinstatement of the Oil Spill Liability Tax
• 7.   Foreign Issues
  • 2005 Changes
    • Foreign Tax Credit
    • Alternative Minimum Tax Foreign Tax Credit 90% Limit Repealed
    • Phaseout of Extraterritorial Income Exclusion
    • Residents of Japan
    • New Rules for Partnership Withholding on Effectively Connected Income (ECI)
    • New Rules for Publicly Traded Partnership (PTP) Withholding on Distributions to Foreign Partners
  • 2006 Changes
    • Exception From the Filing Requirement for Nonresident Aliens
    • Source of Compensation for Labor or Personal Services
    • Phaseout of Extraterritorial Income Exclusion
    • New Rules for Acceptance Agents
• 8.   How To Get Tax Help
• Index