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Rates and Numbers
Monthly Rates -
Click Here for an Updated Rates and Numbers in PDF format.
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Prime rate: |
4.00% (effective
June 27, 2003) |
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November CPI-U1: |
Not available at
press time |
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1. Covers all
goods/services purchased by urban consumers. |
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December, 2003 CPI-U: |
Available
January 15, 2004 |
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For the latest CPI-U and general
information |
202-691-6994 |
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For other CPI indices and more
details |
202-691-7000 |
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200% GDS table to deduct
nonfarm property under MACRS: |
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DB rate for
5-year* property |
DB rate for
7-year** property |
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Year 1 |
20.0% |
14.29% |
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Year 2 |
32.0 |
24.49 |
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Year 3 |
19.20 |
17.49 |
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Year 4 |
11.52 |
12.49 |
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Year 5 |
11.52 |
8.93 |
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Year 6 |
5.76 |
8.92 |
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Year 7 |
|
8.93 |
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Year 8 |
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4.46 |
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* Autos, trucks,
computers/peripherals, typewriters, calculators, etc.
** Furniture and fixtures,
desks, files, etc. |
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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. |
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Depreciation limits for autos
first put in service in 2003: |
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Passenger autos |
Nonqualifying
trucks/vans |
|
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New |
Used |
New |
Used |
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1st year acq.
after 5/5 |
$10,710 |
$3,060 |
$11,010 |
$3,360 |
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1st year acq.
before 5/6 |
7,660 |
3,060 |
$7,960 |
3,360 |
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2nd year depreciation |
4,900 |
4,900 |
$5,400 |
5,400 |
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3rd year depreciation |
2,950 |
2,950 |
$3,250 |
3,250 |
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Each
succeeding year |
1,775 |
1,775 |
$1,975 |
1,975 |
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Key phone numbers |
|
ü
IRS forms and publications |
800-829-3676 |
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ü
IRS bulletin board (requires modem) |
410-965-1133 |
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ü
Retiree benefit status check |
800-772-1213 |
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Annual rates |
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2003 |
2004 |
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Soc. Sec./Medicare rates |
6.20% / 1.45% |
6.20% / 1.45% |
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Social Security wage limit |
$87,000 |
$87,900 |
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Medicare wage limit |
Unlimited |
Unlimited |
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|
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FUTA taxable wage base |
$7,000 |
N.A. |
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FUTA rate |
6.2% |
N.A. |
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FUTA maximum credit |
5.4% |
N.A. |
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Minimum FUTA deposit rate |
0.8% |
N.A. |
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|
|
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Business mileage rate* |
36c/mile |
37.5c/mile |
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Medical mileage rate |
12c/mile |
14.0c/mile |
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Charitable mileage rate |
14c/mile |
14.0c/mile |
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Relocation mileage rate |
12c/mile |
14.0c/mile |
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*Can be used only if taxpayer
owns/leases a passenger auto, van, pickup, or panel truck not
for hire (e.g., as a taxi) that was not depreciated under ACRS,
MACRS or Sec. 179 in earlier years. |
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Qualified retirement plan
limits |
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2003 |
2004 |
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Pretax contributions for 401(k)
and SEP plans and 403(b) annuities |
$12,000 |
$13,000 |
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Workers aged 50
or over
(catch-up) |
$2,000 |
$3,000 |
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Sec. 415(b)(1)(A) defined
benefit plan annual benefit ceiling |
$160,000 |
$165,000 |
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Combined employer/employee
pay-in limits for all defined contribution plans |
$40,000 |
$41,000 |
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Annual compensation limit under
Sec. 401(a)(17) and Sec. 404(1) |
$200,000 |
$205,000 |
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Sec. 408(k)(3)(C) IRA, SEP or
SIMPLE plan limits |
$200,000 |
$205,000 |
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SIMPLE pretax contribution limit |
$8,000 |
$9,000 |
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Workers aged 50 and over
(catch-up) |
$1,000 |
$1,500 |
|
ü
Retiree benefit status check |
800-772-1213 |
|
ü
Bulletin board (requires modem) |
410-965-1133 |
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Applicable Federal Rates (AFR)
for December 2003 |
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Under §1274 of the Internal
Revenue Code, if your firm has made a loan due more than 6
months after the date of a sale or exchange (such as taking a
note from a buyer) with no stated interest rate, the IRS will
impute an interest rate (there are exceptions for installment
sales or contracts). The IRS imputed interest rates for
December 2003 are as follows: |
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Annual |
Semiannual |
Quarterly |
Monthly |
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Short-term:
3 years or less |
1.68% |
1.67% |
1.67% |
1.66% |
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Mid-term:
Over 3 but not more than 9 years |
3.55% |
3.52% |
3.50% |
3.49% |
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Long-term:
Over 9 years |
5.12% |
5.06% |
5.03% |
5.01% |
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