New Business Mileage Rates

IRS has announced an increase in the optional mileage rates for the final six months of 2011.
Business rate is now 55.5 per mile;
23.5 for medical;
14 for charitable.
This is due to the higher gas prices - thank you IRS.

Business Meals and Entertainment Expenses

To deduct these expenses, the IRS indicates the taxpayer must establish that the expense was "ordinary and necessary" in carrying on the trade or business.
To substantiate the expense, the following information is necessary (1) The amount and description of each expense (2) the time and place (3) the business purpose of the activity and any business benefit (4) the nature of the business discussion (5)the business relationship to the person.

WOW - who is doing that?

I believe that the requirements would be met by retaining your receipt (1 and 2)and on the back write the purpose and benefit and the nature of the discussion and the business relationship (3,4,&5).
Attach these receipts to an expense report or a statement which should substantiate the expense.

Thanks Julie.

Home Buyer Credit News

Eligible taxpayers who contracted to buy a home qualifying for the first-time homebuyer credit before the end of April now have until September 30, 2010 to close the deal according to the Internal Revenue Service.
This is a change from the June 30 closing date.
Hello to L in Hawaii. Don't forget Dukes on Sunday.

Tax Deduction for Your Gambling Losses

Yes, you can deduct your gaming losses against your gaming winnings. You must be able to itemize your deductions on schedule A. So keep up with the proof of losses so when you win, you can reduce the taxable income up to the losses.

Energy Tax Credit for Homeowners

Homeowners that make energy efficient improvements to their existing home may qualify for a tax credit of up to 30 percent of the cost of all qualifying improvements with a limit to $1,500.
The credit applies to improvements such as adding insulation, energy efficient exterior windows and energy efficient heating and air conditioning systems.