Home  |   Updated: 01/01/2010
2007 Tax Changes
Home
Insurance
HSA Guidance
Taxes
Military Tax Info
Business Advice
Retirement Plans
Home Based Business
SBA Section
Web Design Basics
Resource Guide
Submissions
Contact Us
 

2007 Tax Year Changes for Small Businesses and the Self Employed from the IRS

 

 
 Think You Can't Afford Quality Health Insurance?

We have tons of info here. Use our Search function to find it fast....
Google   
 

Article added or updated: 09/05/2011

2007 Tax Year - IRS Summary of Changes for Small Businesses and the Self Employed

Tax Years 2007 and Later - Direct from the IRS Web site

Depreciation and Section 179 Expense

Increased section 179 limits. The maximum section 179 deduction you can elect for qualified section 179 property placed in service in 2007 has increased to $112,000 for ($147,000, for qualified enterprise zone and qualified renewal community property). This limit is reduced by the amount by which the cost of qualified property placed in service during the tax year exceeds $450,000.

For qualified section 179 Gulf Opportunity (GO) Zone property, the maximum section 179 deduction is higher than the deduction for most other section 179 property.

Depreciation limits on electric vehicles. The higher maximum depreciation deduction for a passenger automobile that is an electric vehicle does not apply to electric vehicles placed in service after December 31, 2006.

Limited reduction in Liberty Zone tax benefits. The special depreciation allowance for qualified New York Liberty Zone property does not apply to property placed in service after December 31, 2006 (except for qualified nonresidential real property and qualified residential rental property).



 

 

 

Domestic Production Activities Deduction

For tax years beginning after December 31, 2006, the domestic production activities deduction percentage increases from 3% to 6%. For more information on this deduction, see Form 8903, Domestic Production Activities Deduction.

 

Self-Employment Tax

The maximum amount of net earnings subject to the social security part of the self-employment tax for tax years beginning in 2007 has increased to $97,500. All net earnings of at least $400 are subject to the Medicare part of the tax.

Social Security and Medicare Taxes

The maximum amount of wages subject to the social security tax for 2007 is $97,500. There is no limit on the amount of wages subject to the Medicare tax.
 

Standard Mileage Rate

For 2007, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck is increased to 48.5 cents a mile for businessmiles driven.


 



 

 

Qualified Transportation Fringe Benefit

For taxable years beginning in 2007, the monthly limitation regarding the aggregate fringe benefit exclusion amount for transportation in a commuter highway vehicle and any transit pass is $110. The monthly limitation regarding the fringe benefit exclusion amount for qualified parking is $215.

Work Opportunity Credit

After December 31, 2006, the welfare-to-work credit was combined with the work opportunity credit. Use Form 5884, Work Opportunity Credit, to claim a credit for an employee who begins work for the employer after December 31, 2006.

Members of targeted groups. For employees who begin work after December 31, 2006, the following changes pertaining to targeted group members apply.
Ex-felons are no longer required to be a member of a low-income family.
Food stamp recipients must be at least age 18 when hired, but not age 40 or older.

Form 8850.  The Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, that you are required to file with the work opportunity tax credit (WOTC) coordinator for your state workforce agency (SWA) is now due no later than the 28th day after the job applicant begins work for you. See Instructions for Form 8850 for more information.

 

 

 

Google
  Web SelfEmployedWeb.com

Affordable Dental Care from DentalPlans.com
 
As always, please check with your tax professional, CPA or lawyer prior to acting on any advice found here. We do NOT dispense advice on any articles contained here.

Legal Disclaimer

 

© Copyright 2003-2011. Please do not reproduce or copy without written permission. SelfEmployedWeb. All Rights Reserved 

 

 



Inside Taxes
Self Employed Factsheet
Tax Basics
Self Employment Tax
2007 Tax Changes
2007 Mileage Rate
401k Offering
Employer's Tax Guide 2006
AMV Credit
HV Tax Deduction
Good Tax News
Incorporate?
S Corp-LLC Compared
S Corp vs. LLC
S Corp vs LLC 2
S Corp vs LLC 3
LLC vs. Corp
Corporation vs.LLC
Business Entities
Business Entities
2006 Tax Tips
2006 Tax Changes
Pension Protection Act
Charitable Donations 2006
Section 179 Changes 2006
2006 Mileage Rates
2006 Mileage- Long Vers.
Phone Tax Refund
IRS FreeFile '06
IRS E-File
IRS e-file Step by Step
IRS e-file Basics
e-file on your PC
IRS Free File
IRS Free File FAQ
IRS TAX LINKS
Taxpayer Advocate Service
Free Tax Help
One Stop Tax Help
Small Biz Tax Help
Filing Late FAQ
Which Tax Form?
IRS Tax Forms
State Tax Forms
Tax Filing Requirements
Tax Filing Errors
Tax Relief 2004
Common Tax Blunders
TAX Ideas
Tax Ideas 2
Tax Return Preparer Fraud
Avoid IRS Tax Audit
Turbo Tax
College Expense Deduction
Tuition & Fees Deduction
Education Tax Credits
Scholarship Grants
Interest Receved
Realtor Tax Breaks
Selling Biz-Reduce Taxes
Easily Missed Deductions
Hybrid Tax Credit
SUV Tax Deduction for Dummies
SUV Tax Deduction 2005
SUV TAX DEDUCTION UPDATE!
SUV TAX DEDUCTION LIST
SUV Deduction in Brief
SUV Loophole Closing
Tax Deductible SUV
SUV Loophole Widens
SUV Tax - Vehicle List
SUV Loophole Update
SUV Tax Break in Trouble?
SUV Tax Break
SUV Tax Controversy
SUV TAX Loophole
SUV Tax Loophole2
More SUV Tax Deduction
SUV Tax Deduction & IRS
Section 179
Section 179 Pitfalls
Corporate Tax Bill 2004
American Jobs Creation Act
Government Tax Lien
Tax Collection
Tax Payment Options
Offers In Compromise
Disaster/Theft Loss
Disaster Tax Relief
Disaster Tax Relief Links
HSA Tax Shelter
Ultimate Tax Shelter
Home Office Deduction
Home Office Rules
Homeowner Deductions
Health Insurance Deduction
Retirement Plans - 401(k)
Small Biz Mistake
Tax Deduction Myths
Sole Proprietorships
10 Big Tax Breaks
IRS Can't TouchThis
Taxpayer Mistakes
Charitable Donations
Donating your Car
Husband/Wife Business
Hiring Your Kids
Marriage Penalty
Divorce is Bad Business
HRA Plans
Barter Exchanges
Business Expense Guide
Business Expense 2
Employee vs. Contractor
Record Keeping
Military Pay Excluson
Military Tax Relief
12 Tax Deductions
12 Common Tax Scams
Hire Your Spouse
Cut 2004 Taxes
7 ways to cut  2004 Taxes
Last Minute Tax Filing
Tax Tips for Last Minute Filers
2005 Tax Changes
2004 IRS e-file
2005 Standard Mileage Rates
Mileage Rate Incease
2004 Mileage Rates
2004 Income Tax Changes
Auto Deductions
Year End Deductions
Missed Deductions
SUV Deduction 2002 Part 2
2002 SUV Tax Deduction


Advertise on SelfEmployedWeb

CLICK HERE

 

 

TurboTax - Choose Easy

  

 


 

 

 
 

 

Home  |  About Us  | Advertise | Map  | Contact Us| Disclaimer | Links