Standard Mileage Rates To Go Down In 2010
Written by Kristine · December 4, 2009
The IRS announced the standard mileage rates for 2010 this week. The standard mileage rate is the amount used to calculate the cost of using a personal vehicle for business, charitable or medical purposes.
Starting on January 1st, the standard mileage rates will be:
Business: 50 cents per mile
Medical or moving: 16.5 cents per mile
Charitable: 14 cents per mile
The standard mileage rates are lower than the 2009 rates to reflect the decrease in the cost of gas. The IRS studies the cost of operating vehicles to determine the appropriate rate to use for deducting car expenses each year. If the cost of gas rises significantly during the year, such as it did in 2008, the IRS can do a mid-year increase in the standard mileage rates.
Taxpayers have the option of deducting either the actual cost of operating their vehicle or using the standard mileage rate. However, the standard mileage rate can not be used for a vehicle if the taxpayer has deducted depreciation on the vehicle, or if they have taken the Section 179 deduction for that same vehicle.
The standard mileage deduction is beneficial for taxpayers because it reduces the amount of recordkeeping that needs to be done, but it can result in a lower tax deduction than the actual cost method for people who have purchased new vehicles.
Source: IRS Announces 2010 Standard Mileage Rate
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_c.png?x-id=49f8f940-fe8a-45e7-ab7e-f7ffefe84204)
Subscribe to EbizTaxTips.com
Attn: Online Business Owners! Do you want to learn how to minimize your online business taxes?
My free report '5 Tax Saving Tips for Ebiz Owners' includes tips to help you get all the deductions and credits you're entitled to, so you don't overpay Uncle Sam!
Related Posts:
Did You Miss These 2009 Tax Law Changes?
Written by Kristine · November 19, 2009
We saw many tax changes in 2009. While some will carry over into 2010, some will expire at the end of this year. Once January 1 gets here it’s too late to reduce your 2009 tax bill, so take advantage of these tax breaks now.
RMDs Suspended for 2009
One of the biggest changes for 2009 was the suspension of the rules requiring individuals over age 70 ½ to make withdrawals from certain retirement accounts. This suspension applies to 2009 only, so seniors will have to resume taking their required minimum distributions in 2010.
First Time Homebuyer Tax Credit
In an effort to stimulate the housing market, a “first-time” homebuyer was established back in July 2008, but new legislation in 2009 gave the credit new life. The first credit was actually a loan (up to $7,500) that had to be paid back over 15 years; this credit applied to first-time homebuyers who purchased homes between April 9, 2008 and July 1, 2009.
Continue Reading Did You Miss These 2009 Tax Law Changes?
Related Posts:
3rd Quarter Tax Estimates Due Today!
Written by Kristine · September 15, 2009
Just a reminder that your third quarter 2009 tax estimate is due today (September 15).
You may need to file quarterly tax estimates if you are self employed, retired, have a side job or don’t withhold enough income taxes through your job or pension.
Failing to send in estimates could result in a penalty if you expect to owe $1,000 or more when you file your return.
To avoid the penalty for not paying enough estimated tax, you need to pay in at least 90% of your 2009 tax liability or 100% of your 2008 tax liability, whichever is less.
Alternatively, you can choose to file and pay your 2009 taxes by January 31, 2010 to avoid any underpayment penalties.
Use Form 1040-ES to submit your estimated tax payment.
For a refresher on estimated tax payments, see ‘Do I Need to Make Estimated Tax Payments?’
Related Posts:
The Ultimate eBay Spreadsheet!
Written by Kristine · April 21, 2009
If you’ve been looking for an easy way to keep track of your eBay sales and fees, then you’ve found it!
Easy Auctions Tracker is the Ultimate Excel spreadsheet solution for eBay sellers and Trading Assistants. This spreadsheet doesn’t calculate your fees, it actually COLLECTS your transaction information from your eBay account for you!
Easy Auctions Tracker is fully automated and has been Tested & Certified by eBay as a compatible application. By using this spreadsheet, you will be able to quickly collect and record your transactions (sold items and unsold items) without the need to manually enter the information.
With the simple click of a button, Easy Auctions Tracker is able to collect all the information for a entire month’s worth of sales from eBay’s servers for you. No need to know the item numbers of the sold items, just select the month & year then click the “Get All Items” button.
As an accountant and tax professional who works with eBay sellers, I can say that this spreadsheet will make your bookkeeping and thus your tax preparer’s job much easier! Which will mean less time and lower fees for you.
I was excited to find this worksheet and recommend it for eBay sellers who want to track their sales and associated fees in a spreadsheet, but don’t want to spend hours entering the information manually.
You can check out the worksheet at EasyAuctionsTracker.com.
Related Posts:
Getting a Large Refund? Time to Adjust Your Withholding.
Written by Kristine · February 4, 2009
If you find that you are getting too large of a refund, or worse, that you are owing too much money on your tax return, you may need to adjust your income tax withholding to reduce your refund (or reduce the amount you owe).
What should you claim if you want to reduce your refund, and what should you claim if you want to reduce the amount you owe at tax time?
Basically, the fewer exemptions you claim, the more taxes are withheld from your paycheck, and vice versa.
Continue Reading Getting a Large Refund? Time to Adjust Your Withholding.
Recent Comments