Wednesday, November 21, 2012

2013 Standard Mileage Rates Up 1 Cent per Mile for Business, Medical and Moving

What's to be expected at the end of the year? Of course, another Standard Mileage Rates Increase.
The Internal Revenue Service today issued the 2013 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
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 - whole 1cent increase from 2012
  • 24 cents per mile driven for medical or moving purposes - whole 1cent increase from 2012
  • 14 cents per mile driven in service of charitable organizations
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.
If you have any questions, or would like more information about this topic, please feel free to contact us! 

Wednesday, August 10, 2011

Increase in milage reimbursement starting July 1, 2011

Even though we're way into August already, and some of you are getting your kids ready for school, I thought I'd mention that starting July 1, 2011, the IRS reimbursement rate for business related mileage has increased. It is now 55.5 cents per mile (increase from 51cents per mile).
The rate for deductible medical and moving expenses has also increased from 19 cents per mile to 23.5 cents per mile.
Keep track of all your mileage, specially if your employer doesn't reimburse you the full amount. Medical, volunteering and moving related miles can add up as well. You just never know when a little bit is enough to decrease your tax liability! Better too much than not enough in this case.
E-mail or call if you have any questions, concerns, remarks! 

Wednesday, June 22, 2011

The Perfect Recipe for your Accounting and Bookkeeping System

Most business owners dread about the thought of doing their own books. Watch this Video to see why I do what I do and why I get pleasure out of it :) It doesn't need to be as complicated as one may think.
Thank you Kelly Braaten from Beauty Control for recording this presentation for me! I had a blast :)

Monday, April 11, 2011

Calling ALL COLORADO Businesses re: Colorado Controller Unit

PLEASE, don't let this scammers get you! Some of you have already received, some of you may be getting it in the mail - the letter from Corporate Controller Unit. It looks VERY official, and it offers "help" in staying compliant with Colorado Regulations.

Let's start from the beginning: each Colorado Business is required to file a Periodic (Annual) Report with Colorado Secretary of State. The fee for filing is $10 each year. Each business gets a reminder from the State via post card in the mail about a month before the report is due.

This "Corporate Controller Unit" states that if business fails to file this periodic report, it'll become noncompliant or delinquent with the Secretary of State. It offers "help" in filing required report for only $225. It states that you have to respond right away. As official as this letter looks, and appears to be from government agency, it is NOT! It is a scam, and Secretary of State explains in more details in the interview with Channel 4 here.
Most of us don't ever read the fine print at the bottom or at the end of documents. This one would be worth reading, as it states that Colorado Controller Unit in not a government agency and it has no legal authority. Thus businesses are not required to do anything with it, and are free to disregard this letter.

I hope you didn't fell for this scam. If you are not sure if you are current on your filings, check with your Tax Specialist, or simply go to the Colorado Secrectary of State website, and check it. This website offers a lot of great information. Make sure you stay current and compliant, as it costs much more than $10 to re-instate if you became delinquent.

Friday, March 11, 2011

Local Number - FINALLY! :)

"M" a$ Money finally got a new, local number! Please, save it in your records: 719-445-9TAX (719-445-9829). Looking foward to hearing from all of you soon! Happy Weekend!

Monday, January 24, 2011

First Radio Interview with Patti Serrano

Here we go folks! First one EVER live radio interview down... Definitely need to practice more, but not too bad for the first time, ha? What do you think?
In order to listen, go the Inverview link here. On the list towards bottom of the page, look for "Interview with Marta McDonald" recorded on January 18, 2011. Click on "Listen" and PLEASE, give me some feedback :) Thanks in advance and enjoy everyone! Have a SUPER extra week!

Monday, January 10, 2011

Increased first paycheck of the year?

Are you or your spouse employed? If so, you are getting a paycheck on weekly/bi-weekly/monthly bases. The first week of January is over, and if you have gotten your paycheck last Friday, you should have seen an increase.
Because new bill was signed on December 17th, 2010. This bill has decreased the employee's portion of FICA tax from 6.2% to 4.2%. This change is valid only so far for year 2011.
What does it mean? That means that in essence, you got a raise from the government :) If you haven't received your first pay stub this year yet, make sure that you check it when you get it. Your net pay in 2011 should be more then in 2010. If it is not, make sure you talk to your Accounting Department and adjust it.
This bill supposed to boost the economy by giving you more money to spend. Whatever you decide to do with it, make sure you put the extra cash to work FOR YOU!
For more info, check IRS website here: http://www.irs.gov/newsroom/article/0,,id=232590,00.html
If you have any questions, don't hesitate to call me or e-mail me!
Enjoy spending the extra cash!