With the recent push by President Bush for alternative fuel strategies, much confusion has arisen regarding tax incentives for hybrid vehicles. This article clarifies the issue for you. Tax Deductions for Your 2005 Hybrid Automobile People buy hybrid vehicles for different reason. They are good for the environment. They get much better mileage, which saves money. There are tax incentives…
Tag: Deduction
Tax Deductions For The Home Business Owner
Tax time can be one of the most anticipated periods of the year. After the holidays have become a memory and before the fun of summer begins, we must devote several hours of our lives to completing this project. This can be especially challenging for the home based business owner. There are several deductions that are available for the work…
How To Audit Proof Your Tax Return Forever A Recent Close Encounter Of The Irs Kind
Congress has passed legislation that is supposed to result in a more “sensitive” Internal Revenue Service. You know, not such a lean, mean, tax-collecting machine. Hmmm . . . . What do you think? A few months ago, one of my clients (let’s call him Mr. Jones) got one of those IRS “love letters” requesting more information about his return,…
Tax Returns Should You Itemize
When you finally decide it is time to prepare your taxes, the first question is whether you should itemize your deductions or take the standard deduction provided by the IRS. Choices, Choices… Tax deductions are a very simple part of a theoretically simple tax reporting system. If you’ve ever prepared your own taxes, you know this simply isn’t true. Complicated…
Standard Mileage Deduction Rates 2005 And 2006
If you’re in business, you’re interested in the IRS mileage deduction rates. The 2005 rates fluctuated because of high gas prices and now the 2006 rates have been released. Standard Mileage Deduction – 2005 In a move not seen for some time, the IRS actually issued two different mileage deduction rates in 2005. Mileage deduction rates are the dollar value…
Deducing Your Home Office Deduction
You’re filing your first federal tax return as a home business owner, and naturally want to take the home office deductions to which you are entitled. What you most definitely do not want to do is take a home office deduction to which you are not entitled, so you need to understand the difference. The number one rule about qualifying…
Vehicle Tax Deductions Overview
Automotive trends are beginning to change. Gas guzzling SUVs are making way for smarter hybrid vehicles. Also called “clean fuel vehicles”, these cars and trucks operate on either an electric motor, or a fuel engine and an electric motor. They are wise choices for anyone concerned with preserving our earth’s precious resources, and the government is awarding these smart consumers…
Using Mortgage Interest As An Itemized Deduction
What is mortgage interest? It is any interest you pay on a secured loan when you bought your first or second home. The loans include the mortgage to buy your home, a second mortgage, a line of credit or a home equity loan. The loan must be secured debt or it will be considered a personal loan and the interest…
Reduce Your Tax Payments
Reduce your tax payments by claiming an interest payment deduction. If you are busy paying off your student loans, the last thing you want to do is to pay interest on the money that you’re about to give right back to the government. Luckily, in a lot of cases you should be able to deduct the amount of interest that…
How To Get A Tax Break On Your Home Remodeling
It’s always a big discussion among many homeowners who are trying to figure out which tax deduction you’ll be able to get when you’re making improvements to your home. This topic even baffles tax experts at times being that the laws change so often, therefore trying to scramble to see which tax deductions still exist as well as new ones…