December 2014 Blog Posts
December 16, 2014
The IRS has announced the optional 2015 standard mileage rates for use in computing the deductible costs of operating a passenger automobile for business, charitable, medical, or moving expense purposes.
Effective January 1, 2015, the standard mileage rates are as follows:
• Business use of auto: 57.5 cents per mile may be deducted if an auto is used for business purposes.
• Charitable use of auto: 14 cents per mile may be deducted if an auto is used to provide services to a charitable organization
• Medical use of auto: 23 cents per mile may be deducted if an auto is used to obtain medical care (or for other deductible medical reasons)
• Moving expense deduction: 23 cents per mile may be deducted if an auto is used to effect a work-related move to a new home.
You can read IRS Notice 2014-79 for more information.
December 10, 2014 Many people make donations to charities whose work they support, but if you are planning to take a tax deduction for your gift, you must have the proper paperwork. Assembling the right documentation can also be tricky because the requirements vary based on whether the donation is cash and on the value of your gift. If you donate less than $250 in cash, for example, a canceled check, credit card statement or similar record may be sufficient, but if you give more, you will need a written acknowledgement from the charity. An additional tax form—and possibly an appraisal—may be needed for non-cash donations, depending on their value. Of course, the organization itself must also qualify as a charity under IRS rules. We can offer advice that will make it possible for you to fund the causes you believe in and qualify for the deductions you deserve. We can also help you incorporate charitable giving into your long-term tax and estate planning. Be sure to contact us with all of your questions on charitable giving or any other financial concern.