New Mileage Rates For 2011

The IRS has released it’s mileage rates for tax year 2011. These standard mileage rates can be used for deducting qualified miles used for business, charitable, medical or moving expenses. Beginning on Jan 1, 2011 you can deduct the following:

• 51 cents per mile for business miles driven
• 19 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

We’ve said it before and we’ll stress it again. The IRS requires that you keep accurate records to substantiate any mileage deduction that you claim on your tax return. This includes a detailed “mileage log” as well as receipts for gas, repairs and maintenance. If you, by chance, are audited by the IRS, they will want to see these items to prove your claims for deduction. E-File Florida cannot over emphasize:  KEEP GOOD RECORDS!

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Revenue Procedure 2010-51 and Notice 2010-88 contain additional details regarding the standard mileage rates.

If you have any questions or concerns, feel free to contact E-File Florida. We are here as a resource to you. Visit our website atwww.efileflorida.com and sign up for our free Tax Tips newsletter. You can send inquiries to:info@efileflorida.com.

 

IRS CIRCULAR 230 Required Notice – IRS regulations require that we inform you as follows: Any Federal tax advice contained in this communication (including any attachments) is not intended to be used and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction as tax related matter(s).

 

Take Advantage of This Energy Tax Credit Before 2010 Expires!

Energy-Efficient Home Improvements – Homeowners who have or will make certain energy-efficient improvements to their existing homes may qualify for energy credits up to 30% of the cost (credit limited to $1,500).  This credit applies to the following qualified energy efficient improvements:  exterior windows and skylights, exterior doors, metal and asphalt roofs, heating systems, air-conditioning systems and insulation.  With many contractors without work this could be an opportune time to negotiate reasonable prices and make those home modifications, but the work must be completed before year-end if you want the credit.

Feel free to contact E-File Florida by calling 954-583-8534 or by email at: info@efileflorida.com. We are here as a resource to you. Visit our website at  http://www.efileflorida.com and sign up for our free Tax Tips newsletter.