What is The Foundation?	Leaving a meaningful legacy	“Donor advised funds”	“Charitable gift annuities”	Starting a scholarship fund	Gifts through The Foundation	Wills & Bequests
Charitable Remainder Unitrusts	Foundations as Depositories	Estate Planning Basics	Understanding Living Trusts	Wills... A Closer Look	Perils of “Phishing”	Tax Benefits of Charitable Giving
Have You Ever Been Asked?	Maximizing Tax Benefits (Part 2)	Proper Receipting of Charitable Gifts	Gifting Land	Charitable Gifts and Appraisals	“Bargain Sales” 101	2005 Tax Facts

Serving Union County since 1953 A 501(C)(3) Charitable Organization 126 N. Main Street, P.O. Box 608, Marysville, Ohio 43040 Phone: 937.642.9618 Fax: 937.642.7376 Helpful Articles from the Union County Foundation Director 2005 Tax Facts (Part of a series of articles on charitable giving and the Union County Foundation by David Vollrath - Exec. Dir.) April 15th is fast approaching ... to most of us that means but one thing, tax time. The Union County Foundation exists to promote and facilitate charitable giving. Reality is that charitable giving occurs only after taxes and day-to-day financial obligations are met. I have found that the tax and estate planning process can be a bit less intimidating if one just has a general idea of the various tax brackets and exemption schedules. Unfortunately the brackets and schedules tend to change every year to account for inflation and new laws. Thanks to the Foundation’s relationship with the Conrad Teitell newsletter I offer you the following 2005 updates: Tax Brackets Joint filers and surviving spouses: up to $14,600 of taxable income taxed at 10% rate; $14,600 up to $59,400 taxed at 15% rate; $59,400 up to $119,950 taxed at 25% rate; $119,950 up to $182,800 taxed at 28% rate; $182,800 up to $326,450 taxed at 33% rate. Heads of households: up to $10,450/10%; $10,450 to $39,800/15%; $39,800 to $102,800/25%; $102,800 to $166,450/28%; $166,450 to $326,450/33%. In all above categories: 35% for taxable income over $326,450. Personal exemptions The exemption for the taxpayer, a spouse and dependents is now $3,200 for each (up from $3,100 in 2004). However, high-income taxpayers can lose this benefit. The personal exemption "phase out" begins after these thresholds: married, filing joint return and surviving spouses -- $218,950; heads of household -- $182,450; singles -- $145,950; marrieds filing separately --$109,475. Standard Deduction Joint filers and surviving spouses -- $10,000; heads of households -- $7,300; singles -- $5,000; marrieds filing separately -- $5,000. Additional amounts for the elderly and blind: $1,000 for each category; $1,250 if the taxpayer is single and not a surviving spouse. Estate Taxes The exemption is $1.5 million in 2005. It is scheduled to increase to $2 million in 2006 and to $3.5 million in 2009. Then the estate tax is repealed in 2010, but returns in 2011 with a $1 million exemption. Laws could change between now and then. Currently the top estate tax rate for 2005 is 47% (down from 48% in 2004). The top rate is slated to go down 1% next year and then level off at 45%. If the estate tax returns in 201 1, the top rate is slated to be 55%. Gift Taxes The exemption is $1 million in 2005. This is not a separate gift tax exemption but is the unified gift and estate tax exemption. The gift tax exemption will remain at $1 million and won't increase along with the estate tax exemption. Optional standard mileage rates for volunteers The mileage rate for use of an automobile for charity remains at $.14 per mile. You may also deduct parking fees and tolls - but keep accurate odometer readings. The standard charitable mileage rate is not indexed for inflation. Instead of using the standard rate, volunteers can deduct their actual gasoline and oil expenses plus tolls and parking. Health insurance costs Self-employed taxpayers who had a net profit for thip year can deduct 100% of eligible costs in 2005. Social Security The maximum earnings subject to social security tax in 2005: $90,000. As is always the case you will want to consult your financial professional advisor(s) regarding your specific situation in regards to these tax issues. The Union County Foundation encourages you to consider your present and future charitable goals. The Foundation is equipped to help you achieve these goals by providing: planned giving and estate planning resource information, charitable gift annuities/life income plans, and a broad array of charitable choices. Please call us at 937-642-9618, email commfounduc@imetweb.net, reference our website at www.emarysville.com/unioncountyfoundation, or stop by our Marysville office at 126 N. Main St. We are committed to helping you.... “preserve your footprint in time.”

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