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Tax Tips Small Business
| Automobile Expenses |
Which is better - deducting the standard mileage rate or actual expenses? With the increasing cost of gas, it might be a good idea to revisit which tax deduction is the most beneficial - claiming 50.5 cents per business mile (58.5 cents per business mile after July 1, 2008) or your actual vehicle expenses.Claiming the standard mileage rate is easier. All you have to do is keep track of your business miles and multiply them by the current rate. In addition to the standard mileage rate, you may also deduct the costs for parking and tolls. Plus, if you are self-employed, you can deduct the interest paid on your car loan. |
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Small Business Quick Tip
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| Cleaning Out Your Closets? |
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Items you donate may not qualify for a deduction It used to be that you could take all your unused clothing and household items to the local Goodwill, Salvation Army, or thrift store and reap a nice charitable contribution deduction. All you needed was a receipt stating the fair market value and the deduction was allowed. The rules have changed for any donation of noncash items to charitable organizations after August 17, 2006. A charitable contribution deduction of clothing or household items will only be allowed if the item is in good used condition, or better, and you have a receipt. The IRS can deny a deduction for any item that has little monetary value. There is an exception for single items that have a value of more than $500 and for which you have a qualified appraisal.
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Tax Tips Personal
| Summer Day Care |
What expenses qualify for the childcare credit? Parents who have children under the age of 13 are allowed a tax credit for childcare expenses paid so they can work. In the summer, many parents send their children to a structured day camp or an overnight camp for a week or two at a time. In most cases, the cost of sending your child to a camp of this nature does not qualify as a childcare expense, even if one of the reasons for sending the child is for care. |
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Personal Quick Tip
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