Medical expenses	7.5% AGI floor**
	State/local tax	Deductible*
	Other State/local tax	Deductible*
	Mortgage interest	Deductible**
	Personal interest	Non-Deductible*
	Investment interest	Limited to net investment income**
	Charitable donations	Deductible**
	Misc. deductions and employee business expense	2% AGI floor*

Phase-out of Itemized Deductions:

	Itemized Deduction (excluding medical, investment, interest and casualty losses) will be reduced by 3% (2005) or 2% (2006) of the excess of AGI over:
	2005	145,950
	2005	145,950
	*Not deductible for Alternative Minimum Tax **Special limitations for Alternative Minimum Tax

	STANDARD DEDUCTION	2005	2006
	Joint Return	$10,000	$10,300
	Single	5,000	5,150
	Head of Household	7,300	7,550
	Additional-  Blind   Over 65	Joint Single 1,000 1,250 1,000 1,250	Joint Single 1,000 1,250 1,000 1,250
	PERSONAL EXEMPTIONS*	2005	2006
	Deduction for each taxpayer, spouse and dependent	$3,200	$3,300
	*Phased out at a rate of 2% (2005) or 1.33% (2006) of which the total exemption deduction for every $2,500 of AGI which exceeds the following:
		2005	2006
	Single	142,950	150,500
	Married Filing Joint	218,950	225,750
	Head of Household	182,450	188,150

ESTIMATED TAX PAYMENTS FOR 2005
Taxpayers can avoid underpayment penalties by paying in the lesser of:

1. 100% of 2005 tax liability (110% of 2005 tax liability if 2005 AGI exceeds $150,000), or
2. 90% of actualtax for 2006.
   

INDIVIDUAL ALTERNATIVE MINIMUM TAX RATES

	Federal Tax Rate	26% to $175,000 28% over $175,000
	Nebraska Tax Rate	29.6% of Federal AMT as recalculated for Nebraska

BUSINESSES

FEDERAL CORPORATE INCOME TAX RATES

	TAXABLE INCOME		RATE
	$0 -	$50,000	15%
	50,001 -	75,000	25%
	75,001 -	100,000	34%
	100,001 -	335,000	39%*
	335,001 -	10,000,000	34%
	10,000,001 -	15,000,000	35%
	15,000,001 -	18,333,333	38%*
	over	18,333,333	35%

*Reflects surtaxes which phase out benefit of lower rate brackets

PERSONAL SERVICE CORPORATIONS
    35% flat tax rate

NEBRASKA CORPORATE INCOME TAX RATES
    5.58% of first 50,000, 7.81% of excess

TRAVEL, MEALS AND ENTERTAINMENT
100% Deductible: Business Travel and Charitable Travel
50% Deductible: Business Meals and Entertainment
Not Deductible: Educational Travel, Investment Seminars, Club Dues and Lobbying

		High-Cost	Lo-Cost
	Per Diem Rates	Locality*	Locality
	Meals	$58	$45
	Lodging**	168	96

*  High-cost rates are allowed for cities specifically listed
    by the IRS such as New York and Los Angeles
**Per diem cannot be used to substantiate unreimbursed
    lodging costs

STANDARD MILEAGE RATES

	Business:	44.5¢ per mile
	Medical & Moving:	18¢ per mile
	Charitable General:	14¢ per mile
	Hurricane Katrina Deduction	32¢ per mile
	Hurricane Katrina Reimbursement	44.5¢ per mile

TRUST INCOME TAX RATES

FEDERAL

	TAXABLE INCOME		RATE
	$0 -	$2,050	15%
	2,051 -	4,850	25%
	4,851 -	7,400	28%
	7,401 -	10,050	33%
	Over	10,050	35%

NEBRASKA

	$0 -	$500	2.56%
	501 -	4,700	3.57%
	4,701 -	15,150	5.12%
	Over	15,150	6.84%

5 - YEAR ASSETS: Autos, trucks, computers, copiers, typewriters, calculators, private aircraft, medical, construction, wholesale and retail equipment.
7 - YEAR ASSETS: Office furniture and fixtures (such as desks, files, safes and communication equipment) and farm equipment (150% DB for farm equipment).
10 - YEAR ASSETS: Single purpose agriculture structures.
15 - YEAR ASSETS: Land improvements (such as shrubbery, fences, roads, and bridges) and qualifying gas station convenience stores.
27.5 YEAR ASSETS: Residential rental property.
39YEAR ASSETS: Nonresidential real property and leasehold improvements.

	Year	2006	2007	2008
	Max. Deduction	$108,000	$108,000*	$25,000*

Max Deduction = Amount of eligible property that may be placed in service before taxpayers start to loose deductions is $430,000
($200,000 in tax year beginning in 2008). Max 179 deduction for SUVs >6000 lbs. is limited to $25,000

* To be indexed for inflation

MACRS DEPRECIATION TABLE FOR PERSONAL BUSINESS PROPERTY (half-year, 200% DB method)

	Recovery Year	3-Year	5-Year	7-Year	10-Year	15-Year
	1	33.33	20.00	14.29	10.00	5.00
	2	44.45	32.00	24.49	18.00	9.50
	3	14.81	19.20	17.49	14.40	8.55
	4	7.41	11.52	12.49	11.52	7.70
	5		11.52	8.93	9.22	6.93
	6		5.76	8.92	7.37	6.23
	7			8.93	6.55	5.90
	8			4.46	6.55	5.90

MARCS DEPRECIATION TABLE FOR RESIDENTIAL RENTAL PROPERTY (rounded to two decimal points)
Recovery
Year

Month Placed In Service
	1	2	3	4	5	6	7	8	9	10	11	12
1	3.48	3.18	2.88	2.58	2.27	1.97	1.67	1.36	1.06	.76	.45	.15
2-27	3.64	3.64	3.64	3.64	3.64	3.64	3.64	3.64	3.64	3.64	3.64	3.64
28	1.88	2.18	2.48	2.78	3.09	3.39	3.64	3.64	3.64	3.64	3.64	3.64
29	-0-	-0-	-0-	-0-	-0-	-0-	.05	.36	.66	.96	1.27	1.57

MARCS DEPRECIATION TABLE FOR NONRESIDENTIAL REAL PROPERTY (rounded to two decimal points)

Recovery
Year

Month Placed In Service
	1	2	3	4	5	6	7	8	9	10	11	12
1	2.46	2.24	2.03	1.82	1.60	1.39	1.18	0.96	0.75	0.53	0.32	0.11
2-39	2.56	2.56	2.56	2.56	2.56	2.56	2.56	2.56	2.56	2.56	2.56	2.56
40	0.26	0.48	0.69	0.90	1.12	1.33	1.54	1.76	1.97	2.19	2.40	2.61

LUXURY AUTOMOBILES (Max. Depreciation Deduction)

		2005	2005	2006*	2006*
		Cars	Light trucks/vans	Cars	Light trucks/vans
	1st Year	$2,960	$3,260	$2,960	$3,260
	2nd Year	4,700	5,200	4,700	5,200
	3rd Year	2,850	3,150	2,850	3,150
	Each succeeding year	1,675	1,875	1,675	1,875

* Amounts for 2006 are estimated.

	Maximum Compensation Considered	$220,000
	401(K) Elective Limit	$15,000/20,000*
	Simple Elective Limit	$10,000/12,500*
	Profit Sharing, Money Purchase and SEP Plans
	Corporate	25% up to $44,000
	Self-Employed	20%** up to $44,000
	*Higher limit relates to "catch-up" contribution for those age 50 & over.
	**Of net self-employment income.

INDIVIDUAL RETIREMENT ACCOUNTS

• Not A Participant In Another Plan: $4,000 Max. *
• Active Participant In Another Plan:
  

	MARRIED AGI	DEDUCTION	SINGLE AGI
	$0-74,999	$4,000 max	$0-49,999
	75,000-84,999	Partial	50,000-59,999
	85,000 or more	None	60,000 or more

• Non-Active Spouse Of Active Participant: $4,000 if AGI is less than $150,000.
• Up to $4,000 for non-working spouse.
• Additional $1,000"catch-up" contribution allowed for those age 50 & over.

ROTH IRA

• $4,000 Non-Deductible Contribution Per Individual If AGI Is Less Than $150,000.
• Additional $1,000 "catch-up" contribution allowed for those age 50 & over.
• Earnings Are Generally Tax-Free, Subject To Requirements.
• Taxable Conversion From Traditional IRA Is Allowed If AGI Is Less Than $100,000.
• Only One Reconversion Is Permitted In 2006.
  

		OASDI Tax	Medicare Tax
	Wage Base	94,200	No Limit
	Rate	6.2%	1.45%
	Self-Employment tax is twice the above rates.

SOCIAL SECURITY - EARNED INCOME LIMITATIONS

	Age	2006 Income	Loss of Benefit
	Under Full Retirement Age	12,480	1 for 2
	Over Full Retirement Age	No Limit	N/A

	BASE TAXABLE ESTATE	TAX ON BASE*	%ON EXCESS OVER BASE
	$2,000,000	0	46%
	*Net of unified credit of $780,800 which is equivalent to an exemption of $2,000,000.

ANNUAL GIFT TAX EXCLUSION
Gifts per person/Joint gifts by spouse $12,000/24,000

	FEDERAL
	BASE TAXABLE INCOME	TAX ON BASE	%ON EXCESS OVER BASE
	MARRIED FILING JOINT / SURVIVING SPOUSE
	$0	0	10%
	15,100	1,510	15%
	61,300	8,440	25%
	123,700	24,040	28%
	188,450	42,170	33%
	336,550	91,043	35%
	SINGLE TAXPAYER
	$0	0	10%
	7,550	755	15%
	30,650	4,220	25%
	74,200	15,108	28%
	154,800	37,676	33%
	336,550	97,653	35%
	HEAD OF HOUSEHOLD
	$0	0	10%
	10,750	1,075	15%
	41,750	5,620	25%
	106,000	21,858	28%
	171,650	40,240	33%
	336,550	94,657	35%
	Dividends - Domestic and qualified foreign companies 15% (5% for taxpayers in the 10% and 15% brackets) NET LONG TERM CAPITAL GAINS 15% on property held more than 1 year (5% if in 10% & 15% tax bracket). 25% on gains from depreciation of real estate
	NEBRASKA
	BASE TAXABLE INCOME	TAX ON BASE	%ON EXCESS OVER BASE
	MARRIED FILING JOINT / SURVIVING SPOUSE
	$ 0	0	2.56%
	4,000	102	3.57%
	30,000	1,031	5.12%
	46,750	1,888	6.84%
	SINGLE TAXPAYER
	$0	0	2.56%
	2,400	61	3.57%
	17,000	583	5.12%
	26,500	1,069	6.84%
	HEAD OF HOUSEHOLD
	$0	0	2.56%
	3,800	97	3.57%
	24,000	818	5.12%
	35,000	1,382	6.84%

*If adjusted gross income exceeds $145,950 ($72,975 if married filing separate), Nebraska marginal tax rates are phased out.