IRS RELEASES NEW MILEAGE RATES

If you drive a car, truck or van for work, the Internal Revenue Service (IRS) has announced news that impacts you. That's because the IRS has released the new standard mileage rates for 2009. The rates will be used to calculate deductible costs for driving an automobile for business, charitable, medical and moving purposes. The new mileage rates for business, medical and moving purposes will be slightly lower than the rates for the second half of 2008, which were raised in the middle of last year due to spiking gas prices. The rate for charitable driving, however, is set by law and will remain unchanged from 2008.


Beginning January 1, 2009, the standard mileage rates for 2009 are as follows:
Businesses = 55 cents per mile driven
Medical or moving = 24 cents per mile driven
Charitable organizations = 14 cents per mile driven


Overall, these rates reflect the higher transportation costs compared to a year ago. However, the rates are slightly lower than the second half of 2008 to factor in the recent drop in gasoline prices. While gasoline is a significant factor in the mileage rate, other fixed and variable costs, such as depreciation, also enter the calculation.


But before you calculate your deduction, make sure you qualify. The IRS reminds taxpayers that they cannot 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.
Remember, you don't have to use the standard rate! Although the IRS provides the standard mileage rate for ease and convenience, you're not required to use it. If you choose, you have the option of calculating the actual costs of using your vehicle instead of using the standard mileage rates. So keep that in mind as you calculate your automobile usage for business, medical, moving, or charity driving in 2009!


Send me your comments or questions: Email: jliubaker@gmail.com
http://www.socalifgatedcommunities.com/
Jane Liu-Baker
(310) 994-4188

Home Maintenance Tips

There are some simple and effective home maintenance tips to consider at this time of year. Bringing your home up to weather efficiency will save both energy and money.

1. In warmer climates, reduce watering times on your irrigation controller and be prepared to turn the irrigation controller “off” during prolonged rainy periods. Reducing your water usage is conservation of a limited resource - and it also reduces your water bill.
2. Check all your yard drains and swales. Make sure they are functioning properly and taking runoff away from your house. Water intrusion to the home may be caused by runoff pooling against or under your foundation. Direct runoff water away from your home and into a local storm drain. The same goes for rain gutters - make sure the gutter is clear of debris and that the drain leads the runoff away from your home.
3. Check the weather-stripping on all exterior doors. Does it form a tight and unbroken seal? If not, replace the weather stripping. Inefficient weather stripping allows that nice warm air from your heater to escape outside - increasing your energy bill.
4. Speaking of your furnace, when was the last time you checked the air return filter? A dirty filter makes your heater work harder and spreads dust throughout your house. A clean filter allows your heater to work more efficiently, saving you money.
5. Check your windows. Are the tracks clean? Dirt and dust in window tracks can cause damage to your windows and/or create paths for the warm air inside to leak outside.
6. And, while you are checking your windows, look at the caulking around the window frame. Broken or missing caulking can let water in to your home or warm air out. A tube of caulking is relatively inexpensive compared to the damage water can cause or the cost to heat your home.
7. If you have a wood burning fireplace, make sure the damper is open before you light the fire. And, always close the glass doors to keep embers from escaping the fireplace box. Burn only manufacturer-approved materials and wood types in your fireplace. Trash, gift-wrappings and compressed logs should never be burned in your fireplace.

Send me your comments or questions: Email: jliubaker@gmail.com

http://www.socalifgatedcommunities.com/

Jane Liu-Baker

(310) 994-4188