Uh-oh. Santa's tax return is being audited. He claimed the standard mileage rate on the sleigh, but didn't keep a mileage log! He needs to find his receipt for sponsoring the Reindeer Games. His inventory at the end of the year, and every year, is zero - that's suspicious! Worst of all, he paid the elves as independent contractors instead of employees! Yeesh.
Santa could have benefited from professional tax planning!!
The time is now to strategically plan to stop wasting money on taxes you are not required to pay.
12/6/10
Standard Mileage Rates for 2011
The IRS allows two methods of deducting business use of a vehicle.
The first is substantiating actual expenses for deductible costs. Corporations must use this method.
The IRS permits unincorporated taxpayers to use a standard mileage rate. Although using the standard rate may be it more convenient than tracking all actual expenses related to non-personal use, actual expense deduction may be greater than the standard rate deduction in many cases.
The following are the standard mileage rates for the second half of 2011.
Business mileage rate is $0.555
Medical and moving rate is $0.235
Charitable rate is 14 cents per mile (no change).
The following are the standard mileage rates for the first half of 2011.
Business mileage rate is 51 cents per mile (up from 50 cents per mile).
Medical and moving rate is 19 cents per mile (up from 16.5 cents per mile).
Charitable rate is 14 cents per mile (no change).
STANDARD MILEAGE RATES
Business Med Charity
& Moving
2010 $0.500 $0.165 $0.14
Business rate includes $0.23/mile depreciation
2009 $0.550 $0.24 $0.14
Business rate includes $0.21/mile depreciation
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
The first is substantiating actual expenses for deductible costs. Corporations must use this method.
The IRS permits unincorporated taxpayers to use a standard mileage rate. Although using the standard rate may be it more convenient than tracking all actual expenses related to non-personal use, actual expense deduction may be greater than the standard rate deduction in many cases.
The following are the standard mileage rates for the second half of 2011.
Business mileage rate is $0.555
Medical and moving rate is $0.235
Charitable rate is 14 cents per mile (no change).
The following are the standard mileage rates for the first half of 2011.
Business mileage rate is 51 cents per mile (up from 50 cents per mile).
Medical and moving rate is 19 cents per mile (up from 16.5 cents per mile).
Charitable rate is 14 cents per mile (no change).
STANDARD MILEAGE RATES
Business Med Charity
& Moving
2010 $0.500 $0.165 $0.14
Business rate includes $0.23/mile depreciation
2009 $0.550 $0.24 $0.14
Business rate includes $0.21/mile depreciation
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
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