![[Company Logo Image]](../images/cm_logo.gif){kind=logo}
|
|
|
|
September 30, 2002 -- IRS Issues new standard mileage rates The Internal Revenue Service has issued Revenue Procedure 2002-61, providing optional standard mileage rates for use in computing the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Specifically, this Rev. Proc. provides the following standard mileage rates:
Please note that the business mileage rate reflects a 1/2 cent per mile decrease over the 2001 standard mileage rate. Employers who are currently reimbursing employees at the $0.365 rate in 2001 should use the $0.36 rate for 2002, otherwise the $0.005 reimbursement per mile would technically be subject to payroll taxes (it would technically be part of a nonaccountable expense reimbursement plan). The IRS engages an independent contractor each year to conduct annual studies of the fixed and variable costs of operating an automobile. One of the major factors reflecting the increase in these rates is the increasing cost of gasoline and diesel fuel. This Rev. Proc. also discusses other transportation related and automobile use issues which may or may not apply to you. Please contact us for further details.
November 13, 2001 -- Tax Planning Opportunity for Capital Gains In 1997, Congress created new capital gains tax rates. For taxpayers in the 15% or the new 10% tax bracket, the capital gains rate that generally applies is 10%. For taxpayers in a higher tax bracket, the capital gains rate that generally applies is 20%. However, beginning in 2001, for individuals in the 10% or 15% brackets, if they sell property which they have held for at least five years, the rate that applies is 8%. For individuals in a higher bracket, if they sell property which they have held for at least five years, and acquired after 2000, the rate that applies is 18%. Taxpayers in the higher tax brackets, however, can make an election on their 2001 income tax returns to effectively treat their assets acquired before 2001 as sold and reacquired on 1/1/01. Careful consideration of the implications of this election are necessary before proceeding. Contact us to discuss your situation.
May 29, 2001 -- $1.35 Billion Tax Cut Summary Congress passed and President Bush signed into law a significant tax reduction package in summer 2001. Read this summary.
For More Information Contact: |
Contact us.
|
