A donation is a gift. A (tax) deduction is variable tax dollars subtracted, (or deducted), from ones gross income.
Rules to Know…helping others helps you
So many rules to remember, and all you really wanted to do was clean out your closets and be able to park your car in the garage once more.
Photo credit: https://www.flickr.com/photos/fhwrdh/4551794085
Even though we spend so much more time than before online interacting virtually we must get out and about – our customers and clients enjoy seeing us! So owning an automobile of some type is a necessity for business owners. And guess what…
The IRS is giving us a perk, a/k/a deduction. Beginning January 1, 2015, the IRS raised the standard mileage rate for car, van, pickup or panel trucks standard mileage rated from 56 cents to:
As taxpayers, we have the option of claiming actual mileage or operating costs. Mileage, of course, is the number of mile driven for business, and operating costs can include:
Making the decision, mileage or operating costs, is a discussion to have with your tax expert. Whichever way you chose you must keep track of your mileage! At the beginning of each year I write down (in a master business calendar) my car’s current mileage and then I continue to add appointments – making notes of where I went, who I met with and what was covered. Remember that the IRS loves documentation (and so does your CPA).
Photo Credit: https://www.flickr.com/photos/pictures-of-money/17307620362
Rhonda A. Mannes,