If you use a car for business, you have two choices for claiming deductions:
1. Deduct the actual business-related costs of gas, oil, lubrication, repairs, tires, supplies, parking, tolls, drivers' salaries, and depreciation.
2. Use the standard mileage deduction and simply multiply 55.0 cents for 2009 travel. (2008's rate was 50.5 cents for first six months and 58.5 cents for the last six months of 2008) by the number of business miles traveled during the year. Your actual parking fees and tolls are separately deductible under this method.
Which method is better?
For some taxpayers, the standard mileage rate produces a larger deduction. Others fare better tax-wise by deducting actual expenses.
Saturday, March 6, 2010
Thursday, February 25, 2010
Immediate Tax Benefits for Haiti Contributions
Posted by
Patricia Thompson, CPA, PFS, MST
March 1, 2010 Deadline
Individuals who give to charities providing earthquake relief in Haiti can claim these donations on the tax return they are completing this season, according to the Internal Revenue Service.
Taxpayers who itemize deductions on their 2009 return qualify for this special tax relief provision, enacted Jan. 22. Only cash contributions made to these charities after Jan. 11, 2010, and before March 1, 2010, are eligible. This includes contributions made by text message, check, credit card or debit card.
Wednesday, February 17, 2010
Increasing Cash Collections
Posted by
John Mathias, CPA, CVA, MST, ABV
Even profitable businesses sometimes have trouble paying their bills. Running out of cash will get any organization into trouble. Every business needs to monitor how its customers are paying what they owe. Because even good customers sometimes fall behind in paying their bills, every business needs to regularly monitor its accounts receivable.
The sooner you spot a problem, the sooner you can contact the delinquent customer. Maybe there’s a clerical problem with the bill or maybe the customer is directing its limited resources to a vendor who’s more forceful. Whatever the reason, you need to decide as soon as possible how to proceed.
The sooner you spot a problem, the sooner you can contact the delinquent customer. Maybe there’s a clerical problem with the bill or maybe the customer is directing its limited resources to a vendor who’s more forceful. Whatever the reason, you need to decide as soon as possible how to proceed.
Tuesday, February 9, 2010
The Sky's the Limit with Skype
Posted by
William Piccerelli, CPA, CVA, ABV
I'm turned on with Skype and you should be too!
What is Skype? A free service allowing users around the world to make calls, video or phone, over the internet. It's really neat. I've had video calls with friends in Italy on a few occasions. If you haven't heard of Skype, then you are really missing out! Skype requires a camera and microphone for your computer. Although many computers are already equipped with a camera and microphone, mine was not. I purchased a relatively inexpensive camera with built-in microphone for $79 and it works great.
What is Skype? A free service allowing users around the world to make calls, video or phone, over the internet. It's really neat. I've had video calls with friends in Italy on a few occasions. If you haven't heard of Skype, then you are really missing out! Skype requires a camera and microphone for your computer. Although many computers are already equipped with a camera and microphone, mine was not. I purchased a relatively inexpensive camera with built-in microphone for $79 and it works great.
Thursday, January 28, 2010
A Lottery You Don't Want to Win
Posted by
Richard Sullivan, CPA, MST
The Internal Revenue Service has announced the Employment Tax National Research Program will launch in early February. This study will involve the audits of 6,000 randomly selected companies and will be completed within three years. The audits will help the IRS guage revenue compliance with the employment tax laws and will assist with the selection of future audit targets. The good news for businesses is that only 6,000 of these audits are to be conducted. However, if you happen to be selected, you will find an audit such as this difficult and tedious.
Friday, January 22, 2010
Business Customs Across Borders
Posted by
Piccerelli, Gilstein and Co., LLP
When a business is considering expanding operations, choosing overseas might be a cost-effective option. However, when conducting business in person, it's important to understand the customs of each country. Some customs that are normal and respectful in the United States may actually be considered rude in other countries. For example, although the U.S. and Mexico are neighbors, they have very different views about eye contact. In the U.S., looking an individual directly in the eye is considered a sign of honesty. In Mexico, however, continued eye contact can be considered threatening and aggressive. Intermittant eye contact is best.Tuesday, January 12, 2010
Are You in the Zone? Your Business May Qualify for this R.I. Tax Incentive
Posted by
Richard Sullivan, CPA, MST
An Enterprise Zone is a specific geographic location in which the State and Town target programs to aid business expansion and job creation. The State of Rhode Island Enterprise Zone Program is designed to offer tax incentives to businesses that expand their workforce at facilities located in one of the state enterprise zones:Cranston
Central Falls/Lincoln
East Providence
Pawtucket/Lincoln
Providence
Portsmouth/Tiverton
Warren/Bristol
West Warwick
Woonsocket/Cumberland
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