The IRS Deductions Blog

Posts Tagged ‘federal’

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IRS announces 2011 standard mileage rates

The Internal Revenue Service today issued the 2011 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Tax Tips & Advice : How to Deduct the Cost of a Vehicle Used in Business

Question: How do deductions work?

In the 2010 tax year I will be, for the first time ever, itemizing and not using standard deductions. I’m going to have many deductions, from moving expenses, to job finding expenses, to job-related depreciation expenses for cell phones and desks. I will also qualify for the first time home buyer’s tax credit. How do deductions affect tax obligation?

Answer: They reduce your taxable income. Whether itemizing will be more advantageous than claiming the standard deduction is an unknown until you “run the numbers” both ways.

Tax credits are a separate thing. A tax credit directly reduces your total tax owed.

Items on Amazon Right Now for Standard Deductions 2010:

Remedent Reports Fourth Quarter and Year End Results and Remedent to Host a Conference Call at 11:00 A.M. EST, Tuesday …

DUERLE, BELGIUM–(Marketwire – July 15, 2010) – Remedent, Inc. ( OTCBB : REMI ), an international company specializing in research, development, and manufacturing of oral care and cosmetic dentistry products, reported results for the final quarter and for the year ended March 31, 2010 (in US Dollars).

Standard Deduction 2010, 2011

Question: standard mileage rate vs actual expenses?

My dad has been using standard mileage deduction for his 2004 Tundra every year since 2004.

Answer: He could still deduct actual expenses, but couldn’t deduct depreciation – the depreciation was included in the std mileage he’s been taking.

He can switch to actual expenses rather than std mileage, even though you’re right he can’t go the other direction. But if the actual expenses are 3 times the std mileage, it really sounds like something is wrong. Is he prorating the actual expenses for the business mileage vs. commuting and personal?

Is he an employee, or self-employed?

Items on Amazon Right Now for Standard Tax Deductions 2009:

When The Tax Man Cometh (In Person)

Only a small percentage of taxpayers face a full-fledged IRS audit. If you’re picked for one, it’s a serious matter. Here’s what to expect.

Recovery: Vehicle Tax Deduction – June 09

Question: Debt Optimization – Student Loan debt vs. Mortgage debt?

I recently graduated from grad school, and I have my share of student loans. I also am in the market to buy my first home. I have a decent sum of cash saved to put toward a down payment. However, I’m wondering what the smartest thing to do with my savings would be: 1) Pay down some of my variable interest rate private student loans or 2) Apply the savings to a downpayment. Essentially, it’s just a trade off between having student loan debt or having mortgage debt. I’m going to buy a house regardless, but it’s a question of whether I have less mortgage debt or less student loan debt. My instinct would be to apply the savings to the student loan debt since it’s interest rate is Not Tax Deductible like the mortgage debt would be (I make too much money to deduct student loan interest). The variable APR on my private student loans is hovering around 7% right now (Before you ask, I have already consolidated my federal loans). What would be the smartest thing to do in this case

Answer: Having mortgage debt is better since its tax deductible.

Items on Amazon Right Now for Are Student Loan Payments Deductible:

Big Bucks, Small Capitalist

Most third-graders enjoy playing with friends outside and playing video games, and while one elementary student does enjoy those things, he also has been able to make more than just a few extra bucks.