Tax Alert for 2006

[RLymanC]

Copy and paste in your new "The Tax Book"--- :>)

Do you know that under Code Section 4161 (b)(2)(A) that there is a tax imposed on the first sale by the manufacturer, producer, or importer of any shaft of a type used in the manufacture of certain arrows is $0.40 per shaft.

Would this be a deduction on the books as "getting the shaft?" or a year end adjustment as "Shafted?"

[Snaggletooth]

Classic Response

Lyman, I can't really counter with anything intelligent, I just hate to see a great guy put out such classic trivia without the courtesy of a response.

so, VOILA!!!, here is your response!

Seriously, though, does anyone know why the tax law would even write such a thing???

[RLymanC]

Snag

"without the courtesy of a response".

Not sure what is meant by that.
To whom, or is it "to who" should I have responded to.

[Bees Knees]

Seriously, though, does anyone know why the tax law would even write such a thing???

Section 4161 is part of Subtitle D of the code - Miscellaneous Excise Taxes. Section 4161 and 4162 deal with sporting goods, and 4181 and 4182 deal with firearms.

Remember, the Internal Revenue Code deals with all U.S. taxes, not just Income Taxes. There are Heavy Vehicle excise taxes, transportation taxes, wagering taxes, harbor maintenance taxes, taxes on petroleum and certain chemicals, ozone depleting chemicals taxes, taxes on alcohol and tobacco....For example, Section 5051 imposes an $18 tax for every barrel of beer containing not more than 31 gallons. Except that if you only produce 2 million barrels, then you only pay $7 on the first 60,000 barrels.

Shall I continue?

[Unregistered]

New changes for 2006

2006 Inflation Adjustments Widen Tax Brackets, Change Tax Benefits

WASHINGTON — Personal exemptions and standard deductions will rise, tax brackets will widen and individuals will be able to make larger tax-free gifts in 2006, thanks to inflation adjustments announced today by the Internal Revenue Service.

By law, a variety of tax provisions must be revised each year to keep pace with inflation. As a result, more than three dozen tax benefits, affecting virtually every taxpayer, are being modified for 2006. Key changes affecting 2006 returns, filed by most taxpayers in early 2007, include the following:

The value of each personal and dependency exemption, available to most taxpayers, will be $3,300, up $100 from 2005.


The new standard deduction will be $10,300 for married couples filing a joint return, $5,150 for singles and $7,550 for heads of household. Nearly two out of three taxpayers take the standard deduction, rather than itemizing deductions, such as mortgage interest, charitable contributions and state and local taxes.


Tax-bracket thresholds will increase for each filing status. For a married couple filing a joint return, for example, the taxable-income threshold separating the 15% bracket from the 25% bracket will be $61,300, up from $59,400 in 2005.


The annual gift tax exemption will be $12,000, up from $11,000 in 2005.
Revenue Procedure 2005-70, containing a complete rundown of inflation adjustments, is posted on the IRS Web site and will appear in Internal Revenue Bulletin 2005-47, dated Nov. 21, 2005.
Related Link:

Revenue Procedure 2005-70 on 2006 inflation adjusted items (Adobe)

Subscribe to IRS Newswire

[Armando Beaujolais]

"For example, Section 5051 imposes an $18 tax for every barrel of beer containing not more than 31 gallons..."

THEY WHAT?!

Now I'm angry.

[Bees Knees]

The 2006 inflation adjustments have been posted on the updates since September.

http://www.thetaxbook.com/updates_view.asp?ID=18

[Richard]

The 2006 inflation adjustments have been posted on the updates since September.

I believe those were worthy estimates and now the official numbers are out.

[Bees Knees]

I believe those were worthy estimates and now the official numbers are out.

Worthy indeed, since they all agree 100% with the official numbers.