Just released today:
Business mileage = $0.55/mile
Medical/moving mileage = $0.24/mile
Charitable mileage = $0.14/mile
Tuesday, November 25, 2008
Tuesday, November 18, 2008
2008 Tax Law Changes - What's In It For You?
Here are some highlights of the new tax laws that take effect this year:
FOR INDIVIDUALS:
>>A second chance at a rebate check if you didn't fully qualify when you filed your 2007 return.
>>Extension of the deduction for qualified tuition and fees.
>>Extension of the $250 deduction for unreimbursed classroom supplies paid by K-12 teachers.
>>Extension of the sales tax deduction for taxpayers who itemize (long-form).
>>A partial deduction for property taxes for taxpayers who aren't able to itemize.
>>A first-time homebuyer "credit" (which is really a no-interest loan that must be paid back over a 15-year period)
FOR BUSINESSES:
>>A 50% bonus depreciation for new assets purchased in 2008.
>>Section 179 depreciation expensing of up to $250,000 for assets purchased in 2008.
>>Higher first-year depreciation deductions on passenger automobiles weighing < 6,000 lbs.
>>Extension of 15-year (instead of 39-year) depreciation for qualified leasehold and restaurant improvements.
Don't forget - tax planning on January 1 won't help you with your 2008 taxes. Let us know if you need to talk strategy before year-end.
FOR INDIVIDUALS:
>>A second chance at a rebate check if you didn't fully qualify when you filed your 2007 return.
>>Extension of the deduction for qualified tuition and fees.
>>Extension of the $250 deduction for unreimbursed classroom supplies paid by K-12 teachers.
>>Extension of the sales tax deduction for taxpayers who itemize (long-form).
>>A partial deduction for property taxes for taxpayers who aren't able to itemize.
>>A first-time homebuyer "credit" (which is really a no-interest loan that must be paid back over a 15-year period)
FOR BUSINESSES:
>>A 50% bonus depreciation for new assets purchased in 2008.
>>Section 179 depreciation expensing of up to $250,000 for assets purchased in 2008.
>>Higher first-year depreciation deductions on passenger automobiles weighing < 6,000 lbs.
>>Extension of 15-year (instead of 39-year) depreciation for qualified leasehold and restaurant improvements.
Don't forget - tax planning on January 1 won't help you with your 2008 taxes. Let us know if you need to talk strategy before year-end.
Personal Financial Planning Advice
If you're interested in some personal financial planning advice and you aren't already getting his weekly emails, check out my husband's blog at http://hdpfp.blogspot.com. Henry has put together some great information to help you keep your finances on track.
***Mileage Rate Change Effective 7/1/08***
Some good news and some bad news. First, the good news is that the IRS increased the standard business mileage rate from $0.505 per mile to $0.585 per mile effective 7/1/08. Normally the rate only changes at the beginning of each year. The bad news - and it's not really bad news, just a minor inconvenience - you'll need to do a little extra work when you calculate your mileage for the year. Here's what you need to know:
1. Total miles driven during 2008. (Odometer reading at 1/1/09 less the reading at 1/1/08.)
2. Total business miles driven between 1/1/08 and 6/30/08.
3. Total business miles driven between 7/1/08 - 7/31/08.
Don't forget that you must have a mileage log to substantiate your vehicle deductions (whether you claim the standard mileage rate or actual expenses). There are a few shortcuts, so let us know if you'd like to discuss your options.
1. Total miles driven during 2008. (Odometer reading at 1/1/09 less the reading at 1/1/08.)
2. Total business miles driven between 1/1/08 and 6/30/08.
3. Total business miles driven between 7/1/08 - 7/31/08.
Don't forget that you must have a mileage log to substantiate your vehicle deductions (whether you claim the standard mileage rate or actual expenses). There are a few shortcuts, so let us know if you'd like to discuss your options.
Subscribe to:
Posts (Atom)