The 2020 standard mileage rate for business driving falls to 57.5¢ a mile. The mileage allowance for medical travel and military moves declines to 17¢ a mile in 2020. But the charitable driving rate stays put at 14¢ a mile. It’s fixed by law. […]
Category: Income Tax
Charitable Donations 501(c)(3) Deduction
Donations to Charities are a tax deduction ONLY if they are a qualified organization per IRS. Click 501(c)(3) to show a map that can be researched by State. Gives lots of information. Giving money to friends or homeless, while it might be a nice thing to do is NOT a deductible charitable donation. […]
2019 Charitable Donations
Taxpayers aged 70 1/2 (and older) can make Donations of up to $100,000 DIRECTLY from an IRA to a 510(c)(3) charity. You don’t get your hands on the money… it goes DIRECT. This QCD (Qualified Charitable Distribution) is NOT TAXABLE but it DOES COUNT toward RMD (Required Minimum Distribution). […]
2018 Can Unreimbursed Employee Expenses be Deducted?
Can unreimbursed employee expenses be deducted? No, not for a W2 employee. Any of the 2017 expenses and years prior that were subject to a 2% of AGI limitation are no longer deductible. Yes, for independent contractors. Yes, for Statutory employees. The best example of a Statutory Employee is an outside insurance […]
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2018 Unreimbursed Mileage – Unreimbursed expenses for W2 Employee
Assuming you are a W2 employee (not an independent contractor)….. There no longer is any deduction for unreimbursed employee expenses… GONE! That means, unfortunately, you have legitimate expenses you cannot deduct. In an ‘UNACCOUNTABLE’ plan (your allowance), it is suppose to be added to your W2 and taxed for both FICA and Federal Withholding. It is an […]
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20% QBI Deduction (Qualified Business Income)
Exchange – not Sale to defer tax
SUMMARY OF IRS LINK https://www.irs.gov/uac/like-kind-exchanges-under-irc-code-section-1031 You cannot sell ANYTHING and defer taxes… You can EXCHANGE (qualified intermediary is hired.. you don’t get your hands on the money)… subsequent property is identified within 45 days… and have a total of six months from sale date to purchase like kind property. When the exchange is done, if you […]
SEVEN states have no income tax… one more soon
Tennessee may soon have NO income tax. Now it taxes only interest from notes and bonds and dividends. Recently the new law lowers the tax rate to 5% (from 6%) for 2016 and drops further until the tax is gone at the end of 2021. There are SEVEN states with no income tax: Alaska Florida Nevada […]
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2016 Mileage Deduction
Optional standard mileage rates for business use of a vehicle will go down in 2016, the IRS announced on Thursday (Notice 2016-1). For business use of a car, van, pickup truck, or panel truck, the rate for 2016 will be 54 cents per mile, compared with 57.5 cents in 2015. Taxpayers can use the optional standard mileage rates to […]
Veterinary Cost Deductible?
YES for a service dog who helps the visually impaired and other people with physical disability. This includes the cost to purchase the service dog, training, dog food, grooming, etc. This is a MEDICAL EXPENSE. for 2014, this is done on Schedule A subject to the total medical being greater than 10% of Adjusted Gross Income (or 7.5% of AGI if […]