News from Zimmerman & Associates
Mileage Rate Changes
Beginning January 1, 2010 the IRS decreased the optional standard mileage rates for business and medical/moving miles. The business rate has dropped to 50 cents per mile. The medical and moving mileage rate has decreased to 16.5 cents per mile from 27 cents per mile. The charitable mileage rate remains at 14 cents per mile. The new rates apply to miles driven for 2010
The optional business standard mileage rate is commonly used to calculate the deductible costs of operating a business-use automobile, instead of tracking actual costs.
First-Time Homebuyer Tax Credit Extension
The $8,000 First-Time Homebuyer Tax Credit has been extended for sales occurring before April 30, 2010. Sales also qualify if there is a binding sales contract signed before April 30, 2009, and the home purchase is completed by June 30, 2009. The income limit has also been increased to $125,000 for Single taxpayers, and $225,000 for Married taxpayers filing joint returns. The tax credit is reduced for taxpayers with modified adjusted gross income above the limits and the proportionate phase-out range for buyers is $20,000. Therefore, a single taxpayer with modified adjusted gross income of $135,000 will receive a $4,000 tax credit and a married couple with $240,000 will receive a $2,000 tax credit. The credit has also been extended to existing home owners who have owned and lived in a home for five consecutive years out of the last eight years. “The Relocation Credit,” as they like to call it, is $6,500 and is subject to the same income limitations and phase-out as described above. The tax credit is a refundable tax credit which means it is treated similar to having taxes withheld from your wages. The tax credit does have limits. The purchase price must be lower than $800,000 and the credit is the lesser of $8,000 (or $6,500) and 10% of the purchase price of the home. Our 2009 Newsledger discusses credits in further detail.
Newsledgers
2010 Newsledger
2010 Semi Annual Newsledger, 1st Half
2009 Newsledger
2009 Annual Newsledger
2008 Newsledgers
2008 Semi Annual Newsledger, 1st Half
2008 Semi Annual Newsledger, 2nd Half
2007 Newsledgers
2007 Semi Annual Newsledger, 1st Half
2007 Semi Annual Newsletter, 2nd Half
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