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	20 West Lancaster Avenue, Shillington, PA 19607	610-775-7729	Fax: 610-775-7753

				TAX TIPS
				Attention Computer Users		Year End Planning Tips for Business Owners
				Would you rather submit your tax information in a user-friendly format? We have a program that walks you thru the process with prior year information for comparison. If this interests you, please contact our office so that we can set you up with your Tax Notebook profile and assign you a password. This will allow you to log in thru the Internet to send us your tax data using prior year information as a guide.		Delay year-end billing to customers to defer receipt until next year. Stock up on office supplies and pay for them or charge to a credit card by December 31. Farmers can prepay feed and other supply items by December 31. Pay your children for labor they perform. A child under 18 can work for their parents and pay no Social Security Tax on their wages, plus they can earn up to $5,000 in wages before they pay any Federal Income Tax. The child must actually be working and compensation must be reasonable. Payment must by made by December 31. Purchase new or used equipment or livestock and deduct up to $105,000 for 2005 instead of depreciating over the useful life. Certain restrictions apply, but generally this can be done up to December 31 for a full year’s deduction!
				PA TAX INFORMATION Pennsylvania’s Individual Tax Rate remains at 3.07% for 2005. The Special Tax Forgiveness exemption still allows forgiveness of up to 100% of PA tax liability when certain thresholds are maintained by qualifying taxpayers. For example, a family of 4 with 2 claimants and 2 dependents will owe no tax on taxable income up to $32,000 for a savings of $982 .