IRS releases standard mileage rate for 2012

[Fkatz]

IRS Releases 2012 Standard Mileage Rates
The IRS has released the 2012 optional standard mileage rates that employees, self-employed individuals, and other taxpayers can use to compute deductible costs of operating automobiles (including vans, pickups and panel trucks) for business, medical, moving and charitable purposes.
The 2012 standard mileage rate remains at 55.5 cents per mile for business uses, is reduced to 23 cents per mile for medical and moving uses, and remains at 14 cents per mile for charitable uses. For purposes of computing the allowance under an FAVR plan, the standard automobile cost may not exceed $28,200 ($29,300 for trucks and vans). The updated rates are effective for deductible transportation expenses paid or incurred on or after January 1, 2012, and for mileage allowances or reimbursements paid to, or transportation expenses paid or incurred by, an employee or a charitable volunteer on or after January 1, 2012.
Notice 2010-88, I.R.B. 2010-51, 882, as modified by Announcement 2011-40, I.R.B. 2011-29, 56, is superseded.

Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039 Fax: (704) 739-3934
e-mail: [email protected]
Web Site: File Your Return Online
Franklin Katz, ATP, PA, PB,

Providing Professional Accounting, Bookkeeping, Payroll and Income Tax Preparation Services

Circular 230 Disclaimer – Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding related
penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax
related matters addressed herein.

 

[blizzard2014]

We can't write off more than 29k for cargo van now? That's crap! Are cargo vans considrred moving vans? Please explain, thanks.

 

[EtowahE]

I do not think the $29K applies to "for hire" vehicles, at least thats what my Turbotax business software tells me. But for these vehicles, actual expenses must be claimed instead of mileage, both can not be claimed, some people do it anyway (lol)

 

[Fkatz]

Re: IRS releases standard mileage rate for 2012
I do not think the $29K applies to "for hire" vehicles, at least thats what my Turbotax business software tells me. But for these vehicles, actual expenses must be claimed instead of mileage, both can not be claimed, some people do it anyway (lol)


When using an over the counter software like Turbo-Tax you are responsible for all entries that you put on your tax return,

If you are audited and you cannot come up with the information that you entered it will be disallowed.
The main ones in a cargo van are the Mileage ,and Per Deim,
Or if you are using Actual Expenses Excessive Repair amounts.
The IRS figures approx 8-10% repairs and maintenance of your gross, Do not deduct major repairs, Engine, Trans, they must be done separately and depreciated at Staight line Depreication (SL) for 5 years

Line 24B Meals and entertainment percentage, it automatically gives you 50% instead of 80% as per IRS. and the rate is $59.00 per day at the 80%. this is a reimbursement for meals only,
The Entertainment part must be taken under SCH C, Part V, other Expenses
For the explanation in the line enter:
Entertain Exp. $300 at 50pc $150.00

It only allows you as a employee of a trucking company on form 2106 put the meals subject to DOT Regs on line 5b and at that time it figures it correcty

If you are doing a SCH C, then you have to find the Meal deduction within the help menu. oit is not automatice unless there is a box on the sch C, to make a checkmark in or a letter specifing Sub to DOT REGS

If you are leased on to a company that states that "They have Exclusive USE of you Vehicle WRITTEN INTO THERE CONTRACT THEN THE MILEAGE RATE CAN APPLY. YOU ARE NOT CONSIDERD AS "FOR HIRE"

There was a CCM Memo # 1997-40 that allowed the mileage after it was disallowed on a taxpayers return. It has never been changed.

I KNOW THAT THERE HAVE BEEN AUDITS ON THIS IN THE PAST (MILEAGE) bUT IT CAN BE USED.

here is where the problem lies.

IF you claimed the standard Mileage rate, it must
through the life of the vehicle for business use.

If you switch to the actual expenses you cannot revert back to the mileage deduction.

If you decided to use both, YOU WILL DEFINITLY BE AUDITED, BUT IT COULD TAKE UP TO 3 YEARS FROM THE DATE THE RETURN WAS DUE.


Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039 Fax: (704) 739-3934
e-mail: [email protected]
Web Site: File Your Return Online
Franklin Katz, ATP, PA, PB,

Providing Professional Accounting, Bookkeeping, Payroll and Income Tax Preparation Services

Circular 230 Disclaimer – Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding related
penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax
related matters addressed herein.

 

[cranis]

@ Mr katz, I recieve 20$ a day for my job as a (tax free) per diem from my company, plus they pay hotels, because i am in some area for any where from a wek to a couple months.
My question is can I somehow claim the difference on y taxes up to the maximum allowed by IRS law? and do I have to use the state of home office or the state of which I am working in? Any imput would help. Note** I drive a DOT regulated vehicle not hauling frieght, (mobile advertising)

 

[philbuckner]

Though the bulk of unpaid taxes after enforcement actions were still attributable to individuals misreporting income, the single infraction that left the biggest shortfall was the $122 billion loss from business income not reported on individual returns. According to the Wall Street Journal, that income is from Schedule C and Schedule F, located on Form 1040, or income from small businesses or farms. Source for this article: Tax underpayment at $450 billion, says IRS.