TAX LAW CHANGES
June 12, 2018 - Douglas Myser
Tax law changes. The Internal Revenue Service has provided guidance for taxpayers and employers about changes from the tax law changes that impact, move related expenses, un-reimbursed employee expenses, and vehicle expenses. The tax law changes suspends the IRS deduction for moving expenses.. Meaning you cannot deduct the use of an automobile as part of a move until after 2016. Tax law changes.
The tax law changes itemized deductions that are limited to 2 percent of adjusted gross income. This change will impact an un-reimbursed employee for items like uniforms, union dues and the deduction of business related meals, entertainment and travel. The business standard mileage rate which was issued before the Tax Law, cannot be used to claim an itemized deduction for un-reimbursed employee travel expenses in taxable years after December 31st, 2017, and before January 1st, 2016.
The standard mileage rate for the use of a car, van, or pickup or panel truck for 2018 remain, 54.5 cents for every mile of business travel driven a 1 cent increase from 2017. 18 cents per mile driven for medical purposes, a 1 cent increase form 2017. 14 cents per mile driven in service of charitable organizations, which is set by statute and remains unchanged. The standard mileage rate for businesses is based on an annual study of the fixed and variable costs of operating an automobile.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. A taxpayer may not use the business standard mileage for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than 4 vehicles being used at the same time.
One of the fastest way that self employed individuals get into tax trouble, is not keeping tabs on expenses, especially mileage deductions, that can add up to thousands of dollars in write offs. Don't put yourself in a position where you need Tax Resolution Services, because of sloppy record keeping. If you did mess up and owe the IRS we can help. Our 36 year old Tax Resolution Company is a leader among Tax Resolution Companies. We can file any past due tax returns, then determine your options for Tax Relief in the IRS and State Revenue Codes. Our Tax Resolution process is stress free for out clients, so we can eliminate potential Bank Levy or IRS Wage Garnishment actions. Call today for a free consultation. Our Services are Nationwide. 1-888-689-7861