Thursday, November 29, 2012
Obama said Wednesday they should use a new Twitter hashtag, #My2K, to explain what they would do with the additional $2,200 that a family of four is estimated to pay next year if the current tax rates expire for taxpayers earning less than $250,000 a year.
Monday, November 26, 2012
Friday, November 23, 2012
Beginning on Jan. 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 56.5 cents per mile for business miles driven
- 24 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
The rate for business miles driven during 2013 increases 1 cent from the 2012 rate. The medical and moving rate is also up 1 cent per mile from the 2012 rate.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.
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 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 more than four vehicles used simultaneously.
These and other requirements for a taxpayer to use a standard mileage rate to calculate the amount of a deductible business, moving, medical, or charitable expense are in Rev. Proc. 2010-51. Notice 2012-72 contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.
-IRS Notice 2012-95
Thursday, November 22, 2012
Today, we all move pretty fast and sometimes we rush right by the simple things in life, like thanking our colleagues, customers and friends for all that they do.
We’d like to “slow down” for a minute, during a very challenging year, as we approach one of America’s great traditions of “taking stock and giving thanks.” For almost 400 years, our country has celebrated Thanksgiving Day to give thanks for what we have and express gratitude to each other.
Your friends at Northeast Financial Strategies want you to know how much your loyalty and friendship are appreciated this year and in all years past.
To you and your family, from all of us here at NFS, a very Happy Thanksgiving!
Wednesday, November 21, 2012
Some states have borrowed from the Federal government to pay unemployment benefits and have not yet repaid the money. As a result employers with payroll in those states have a “credit reduction” that applies to effectively reduce the maximum .054 credit. The reduction in the credit means a net increase in the FUTA taxes due for the year.
Tuesday, November 20, 2012
The M&IE rates have stayed at the same $46, $51, $56, $61, $66, and $71 although some cities may have different rates that they had for the prior fiscal year (October 1, 2011-September 30, 2012). The full per diem tables by state and key city can be found at http://www.gsa.gov/. IRS Publication 1542 has been discontinued and is no longer available for new years.
The definition of “incidental expenses” has changed. Effective October 1, 2012, this includes only fees and tips given to porters, baggage carriers, hotel staff, and staff on ships. Transportation between places of lodging or business and places where meals are taken, and the mailing cost of filing travel vouchers and paying employer-sponsored charge
Monday, November 19, 2012
Friday, November 16, 2012
Q: I am 26 and I have been contributing to my Roth IRA since I was 18. Now, I am looking to purchase my first home and was considering taking funds from my Roth IRA. The 5-year rule is confusing to me and I am not sure how this applies to me, given the circumstances. Are the funds in my Roth IRA penalty free, and tax free when withdrawn for the purpose of buying a first home?
Thursday, November 15, 2012
Wednesday, November 14, 2012
President Barack Obama’s re-election means his administration will push to let tax cuts enacted during the George W. Bush era expire for high earners, as scheduled, at year-end. Obama wants to increase the top federal income tax rate to 39.6 percent from 35 percent, boost rates on long-term capital gains to as much as 23.8 percent, and shrink exemptions from estate-and-gift taxes.
Wednesday, November 7, 2012
In his acceptance speech at McCormick Place in his native Chicago, Obama promised to work with both parties to solve the country’s lingering economic problems. “You elected us to focus on your jobs, not ours,” he said. “And in the coming weeks and months, I am looking forward to reaching out and working with leaders of both parties to meet the challenges we can only solve together: reducing our deficit, reforming our Tax Code, fixing our immigration system, freeing ourselves from foreign oil. We’ve got more work to do.”
Tuesday, November 6, 2012
Voting in Wrentham is at the Delaney School, Gibbons Gym, 120 Taunton St. Polls open Tuesday, November 6 at 7 a.m. and will close at 8 p.m.
Thursday, November 1, 2012
The relief applies to taxpayers and preparers in an area affected by Hurricane Sandy or otherwise impacted by the storm. It primarily applies to businesses whose payroll and excise tax returns and payments were due on October 31. No action is required by the taxpayer; the relief is automatic. Regular federal tax deposits are due according to current rules.