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Archive for October 15th, 2003

2004 IRS Mileage Rates

Posted by taxguru on October 15, 2003

IRS has gotten faster in releasing its standard mileage rates. They just announced what they will be for 2004. Employers and others who base their company rates on the IRS’s have plenty of time to set things up for next year.

The optional standard mileage rate for business use of an automobile (including vans, pickups and panel trucks) in 2004 will increase to 37.5 cents a mile from the 36 cents this year. You can also use this rate to calculate business-travel deductions instead of figuring out your actual costs.

As I’ve mentioned several times before, IRS bean counters long ago discovered that vehicles use less fuel and depreciate less when driven for charitable or medical purposes, as well as when you are moving your residence. Their official standard rate for using an auto for medical reasons, or for calculating deductible moving expenses, will increase to 14 cents a mile next year from 12 cents this year.

However, the standard rate will remain at 14 cents a mile when using your vehicle on behalf of charitable organizations. This is another example of the fact that, while deductions for charitable deductions are useful, those costs can generally save you twice as much in taxes if they can be deducted on your business schedule.

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Posted by taxguru on October 15, 2003

I haven’t yet seen one of these new bills in person. However, the theme of the comments on its new look is interesting. It makes me wonder – Who would be designing the currency of the PRC if it were to do what many people want and secede from the union and become the Left Coast version of Cuba?

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Posted by taxguru on October 15, 2003

Not-for-Profit Credit Counselors Are Targets of an IRS Inquiry – Many people who are already in poor financial shape fall for these credit counseling scams. Many of them are nothing more than fronts for the credit card companies trying to prevent people from discharging their debts through bankruptcy, while many others are outright frauds; receiving payments from their “clients” (aka suckers) and skipping town without forwarding any of that money to the creditors. Here is the IRS’s official news release on credit counseling agencies.

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Posted by taxguru on October 15, 2003

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