The Internal Revenue Service today issued the 2011 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2011, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
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
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study. Independent contractor Runzheimer International conducted the study.
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
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Our Company Resume:
Our staff has over 110 years of professional tax representation experience collectively
On staff, Board Certified Tax Attorney’s, Certified Public Accountants, Enrolled Agents, Former IRS Manager, Instructor and Trainers
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Licensed to practice in all 50 States
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Nationally Recognized Veteran Former IRS Agent
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Fresh Start Tax is one of the premier tax resolutions firms in the country. We deal with all types of civil cases including individuals, businesses, corporate and defunct corporations. We have staff that specializes in every facet of the Internal Revenue Service. We know all the IRS strategies. Some of our many specialties include the following:
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As a result of new legislation on foreign tax reporting and disclosure of financial assets, some taxpayers may be required to file the Report of Foreign Bank and Financial Accounts (FBAR) and the new foreign financial assets disclosure statement with their income tax return. These reporting requirements will potentially add to both taxpayer burden and the complexity of tax law changes. Specifically, United States citizens, residents, and domestic entities that have a financial interest in, or signature authority or other authority over, a foreign financial account that exceeds $10,000 in the aggregate at any time during the calendar year are required to file the FBAR. New legislation will require individual taxpayers with an aggregate balance of more than $50,000 in foreign financial assets to file a disclosure statement with their income tax return. The Internal Revenue Service (IRS) is working to address the impact that the legislative requirements have on United States citizens and residents.
Fresh Start Tax 1-866-700-1040 is one of the premier tax preparation and tax resolution firms in the country. We are former IRS agents who know our business. Each situation is different and you should consult with a licensed tax consultant. What you need to know about cancellation of debt and the IRS.
If you borrow money from a commercial lender and the lender later cancels or forgives the debt, you may have to include the canceled amount in income for tax purposes, depending on the circumstances. When you borrowed the money you were not required to include the loan proceeds in income because you had an obligation to repay the lender. When that obligation is subsequently forgiven or the property is abandoned or foreclosed, the amount you received as loan proceeds is reportable as income. The lender is usually required to report the amount of the canceled debt to you and the IRS on a Form 1099-A, Acquisition or Abandonment of Secured Property, or Form 1099-C, Cancellation of Debt.
If you received a Form 1099-A , or Form 1099-C , and the information is incorrect, contact the lender to make corrections.
Some canceled debts are not includable or fully includable in income. For example, if you have canceled debt on your principal residence, you may be able to exclude part or all of the amount canceled from your income under the Mortgage Forgiveness Debt Relief Act of 2007. IS Canceled Debt – Is it Taxable or Not?
In general, if a debt for which you are personally liable is canceled or forgiven, other than as a gift or bequest, you may have to include the canceled amount in gross income. Depending on the circumstances by which your debt was canceled and the nature of any property associated with the debt, the canceled debt may qualify for an exception to inclusion in gross income, or the canceled debt may result in gross income but the income may be excluded.
A debt includes any indebtedness for which you are liable or which attaches to property you hold. If property is associated with a debt, a cancellation of all or part of the debt may occur as a result of foreclosure proceedings on the property, repossession of the property, your return of the property to the lender, your abandonment of the property, or a principal residence loan modification. Regardless of the factors relating to the cancellation, you must report any taxable amount as ordinary income from the cancellation of debt on Form 1040 or Form 1040NR and associated sub-schedules as advised in IRS Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonment’s.
If a federal government agency or an applicable financial entity cancels or forgives a debt you owe of $600 or more, you should receive a Form 1099-C , Cancellation of Debt, showing amounts and other information relating to the cancellation. The amount of canceled debt is shown in Box 2 of the form.
Canceled Debts that meet the requirements for any of the following exceptions or exclusions will not be taxable. Canceled Debt that Qualifies for Exception to Inclusion in Gross Income:
Amounts specifically excluded from income by law such as gifts or bequests
Cancellation of certain qualified student loans
Canceled debt that if paid by a cash basis taxpayer is otherwise deductible
A qualified purchase price reduction given by a seller
Canceled Debt that Qualifies for Exclusion from Gross Income:
Cancellation of qualified principal residence indebtedness
Debt canceled in a Title 11 bankruptcy case
Debt canceled due to insolvency
Cancellation of qualified farm indebtedness
Cancellation of qualified real property business indebtedness
This Information Is From The IRS.GOV Websit. It Is Made Available To Our Clients
Fresh Start Tax 1-866-700-1040 if one of the finest tax preparation companies in the business that provides personal help to its clientele. Unlike big firms, one tax professional is assigned your case so you get the immediate attention that you deserve to have.
On staff are former Tax Attorney’s, CPA’s, former IRS Agents and instructors as well as IRS Tax Managers.
We are honest, experts in our field having over 140 years of total tax experience. We have the highest rating that the Better Business Bureau can give for our industry.
Call us today for personalized tax service . 1-866-700-1040 Seven Facts about the Non business Energy Property Credit
Thinking about making some energy saving improvements to your home this summer? Taking some energy saving steps now may lead to bigger tax savings next year. The Non-business Energy Property Credit, a tax credit for making energy efficient improvements to homes was increased as part of the American Recovery and Reinvestment Act of 2009. Here are seven things the IRS wants you to know about the Non business Energy Property Credit:
The new law increases the credit rate to 30 percent of the cost of all qualifying improvements and raises the maximum credit limit to $1,500 claimed for 2009 and 2010 combined.
The credit applies to improvements such as adding insulation, energy-efficient exterior windows and energy-efficient heating and air conditioning systems.
To qualify as ?energy efficient? for purposes of this tax credit, products generally must meet higher standards than the standards for the credit that was available in 2007.
Manufacturers must certify that their products meet new standards and they must provide a written statement to the taxpayer such as with the packaging of the product or in a printable format on the manufacturers? Website.
Qualifying improvements must be placed into service after December 31, 2008, and before January 1, 2011.
The improvements must be made to the taxpayers principal residence located in the United States.
To claim the credit, attach Form 5695, Residential Energy Credits to either the 2009 or 2010 tax return. Taxpayers must claim the credit on the tax return for the year that the improvements are made.
Homeowners who have been considering some energy efficient home improvements may find these tax credits will get them bigger tax savings next year.
The following is the IRS criteria for the filing of the Federal Tax Lien
When there is an Unpaid Balance of Assessment below $5,000 and filing the lien will promote payment compliance. IRS will file a NFTL. This gives IRS the right to file a federal tax lien at any time. IRS can justify anything they want, sad.
This will also apply to additional assessments on currently open cases and those being reported as currently not collect-able. IRS will take into account if assets are owned or the possibility of future assets being acquired during the collection statute period. In the case of accrual only liens, consider the amount of the accruals.
If there is a UBA of any amount for an entity and the entity is not adhering to compliance requirements such as federal tax deposits, return filings, the IRS will file a NFTL.
The aggregate UBA is $5,000 or more file a NFTL
IRS will determine the need to file a NFTL when there are additional assessments.
An installment agreement does not meet streamlined, guaranteed, or in-business trust fund express criteria file a NFTL.
If an installment agreement meets streamlined or in-business trust fund express criteria, then a lien may be filed.
An open account with an aggregate UBA of $5,000 or more is being reported as currently not collectible file a NFTL.
A case involving both assessed and unassessed periods will be reported currently not collectible the NFTL filing may be held up to include both period types on the NFTL.
A good tax professional can find ways not to have the tax lien filed. Call Fresh Start Tax 1-866-700-1040
