Summer of 2008: Gas prices are high!

Here’s a bit of relief: If you drive for business purposes, you may deduct 58.5 cents for each business mile beginning July 1, 2008. The deductible rate for the first half of 2008 was 50.5 cents. Keep a detailed mileage log to maximize your benefit.

Charitable Contributions

Substantiation requirements are stricter than ever before. Be sure to keep good records to verify your deductions.
CASH GIFTS: A cancelled check or a receipt from the charity is required, no matter how small the gift.
HOUSEHOLD ITEMS: Documentation is required, and items must be in "good condition." Some items require appraisals. Used car deductions are limited to the sale price of the vehicle when the charity sold it, although there are some exceptions. You can find the details and valuation assistance in IRS Publications 526 and 561, available at www.irs.gov.
STOCK DONATIONS: If you have owned stock for longer than a year, and the stock has appreciated in value, consider donating the shares rather than donating cash. There is no tax benefit for donating an asset that has decreased in value. Call us for more information if you are considering this type of transaction.
BUNCHING GIFTS: Some taxpayers benefit by itemizing deductions and claiming the standard deduction in alternate years. This planning technique usually involves real estate taxes and charitable contributions. Think ahead before you make significant contributions. We can help you estimate the tax benefit of your contributions.
VOLUNTEER WORK: Out of pocket expenses are deductible. Mileage for volunteer work is deductible at the rate of 14 cents per mile. The value of your work is not deductible.
ELIGIBLE ORGANIZATIONS: Organizations must be recognized charitable organizations for contributions to be deductible. Gifts for the benefit of individuals or families are not deductible. Political contributions are not deductible.

R & D credit for businesses

More industries now qualify for the research and development tax credit. Some businesses are able to file amended returns and receive refunds of prior years’ taxes. The government has intentionally broadened the scope of businesses which may qualify for the credit in order to stimulate the economy and reward those who work to make their field more efficient, safe, competitive and innovative.

Companies that have a new or improved product, process, formula, technique or invention may qualify for a credit of a portion of their research expenditures. To find the range of businesses and activities that may benefit, find the details at www.alliantgroup.com or www.irs.gov.

Partner Activities

Lisa taught classes on tax and accounting for business owners at A+ Federal Credit Union and at the Small Business Development Center.

Ann participated in a case study presentation at the Society of Financial Service Professionals and was a recent guest on Brad Wiewel's radio show "Law Talk with Brad."

Debbie completed her term as president of her BNI chapter in March and led a class on minister's taxation issues at the Austin Presbyterian Theological Seminary.

Depend On Us!

You can depend on Bargsley, Andrews & Steinbach for all your accounting needs.

Tax Planning and Quarterly Estimates for Individuals, Corporations and Partnerships
Small Business Planning and Consultations
Seminar Presentations
Litigation Support
Estate Planning
Trust Administration

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