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2017 Standard Mileage Rates

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Beginning on Jan. 1, 2017, the standard mileage rates for the use of a car, van, pickup or panel truck will be:

  • 53.5 cents per mile for business miles driven, down from 54 cents in 2016
  • 17 cents per mile driven for medical or moving purposes, down from 19 cents for 2016
  • 14 cents per mile driven in service of charitable organizations

The business mileage rate decreased half a cent per mile and the medical and moving expense rates each dropped 2 cents per mile from 2016. The charitable rate is set by statute and remains unchanged.

For self-employed business owners, interest expense paid on the car loan is also deductible, above and beyond the standard mileage rate.

Parking and tolls are always separately deductible.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile, including depreciation, insurance, repairs, tires, maintenance, gas and oil. The rate for medical and moving purposes is based on the variable costs, such as gas and oil.

 

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The Sky is Falling! Not!

Today’s political climate of anything can and will happen, puts people in a panic and the stock markets certainly prove that with their roller coaster ups and downs.

If a stock represents a good solid business, the latest market panic presents a great opportunity to pick up some bargains in stocks and mutual funds.  It is time to buy!

A good solid business creates value with its products or services, which are in high demand by others.  It makes a good profit which it returns to its shareholders and invests in its own growth and also in the growth of the community in which it resides.  Such a company weathers these ups and downs very well.

Between 2000 and 2050, census data suggest, the U.S. 15-to-64 age group is expected to grow 42 percent. (This is a 2010 quote from the Smithsonian). This obviously means the US economy will continue to grow, offering those good solid businesses MORE customers, for the next 34 years.  If you take a long term view to investing, there’s no need to panic about the short term ups and downs in the stock market.  Just hold tight for the ride.

 

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CP301 Notice from IRS

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If you receive a CP301 Notice from the IRS, it means that you have set up online access with the IRS.  If you did NOT do that, then you must call the IRS immediately at 1-888-841-4648 to DISABLE THE ONLINE ACCESS account.

The IRS online access was hacked about two months ago, so the IRS disabled the ability to get transcripts of your income tax return information downloaded through the online access account.  However, a transcript can still be ordered this way, and it will come to you by snail mail to your address of record.

There are now only two other reasons for setting up the Online Access account with the IRS: to set up a payment plan or to get a PIN to e-file your tax return.  This second reason, to get a PIN to e-file your tax return, is the PROBLEM right now.  It means someone else can e-file a fake tax return in your name and claim refunds for direct deposit into an account that probably won’t exist later when the fake tax return is discovered.

So if you receive this CP301 Notice of setting up an online services account with the IRS, and you did not do so, IMMEDIATELY call the IRS and get the account disabled.  Unfortunately, it will take at least 45 minutes on hold to get through to the IRS as they do not have enough staff to cover such calls.

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2016 Standard Mileage Rates

Beginning on Jan. 1, 2016, the standard mileage rates for the use of a car, van, pickup or panel truck will be:

• 54 cents per mile for business miles driven, down from 57.5 cents in 2015

• 19 cents per mile driven for medical or moving purposes, down from 23 cents for 2015

• 14 cents per mile driven in service of charitable organizations

The business mileage rate decreased 3.5 cents per mile and the medical, and moving expense decreased 4 cents per mile from the 2015 rates.  The  charitable rate is based upon statute.

For self-employed business owners, interest expense paid on the car loan is also deductible, above and beyond the standard mileage rate.

Parking and tolls are always separately deductible.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile, including depreciation, insurance, repairs, tires, maintenance, gas and oil. The rate for medical and moving purposes is based on the variable costs, such as gas and oil.

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