IRS

A collection of 25 posts

IRS

Demystifying Mileage Deductions: Understanding Business, Commute, and Personal Trips According to IRS Guidelines

Understanding the classification of your trips—whether they fall into the categories of business, commute, or personal—is crucial when it comes to claiming mileage deductions as a self-employed individual. By adhering to IRS guidelines, you can ensure accurate deductions and maximize your tax benefits. Let's dive into the definitions

IRS

Understanding the Differences Between Company-Owned and Privately-Owned Vehicles for Expense Reporting

As a small business owner or self-employed individual, you likely use your vehicle for both personal and business purposes. But when it comes to reporting expenses related to your vehicle, it's important to understand the differences between company-owned and privately-owned vehicles. The Internal Revenue Service (IRS) defines a company-owned vehicle

IRS

IRS Tax Deduction of Vehicle Expenses: Cents-per-Mile or FAVR?

The IRS offers two primary methods for claiming vehicle expenses: the standard mileage rate and the fixed and variable rate (FAVR) method. Which Method is Right for You?

IRS

Navigating Mileage Deductions for Self-Employed Professionals in the US

Mileage deductions can significantly reduce your taxable income and help you save money on taxes as a self-employed professional in the US.

IRS

How to Track and Report Business Mileage Expenses in IRS Form 1040

Business mileage expense record keeping for IRS tax deduction: what you need, how to easily record your mileage, and what to report to the IRS.

IRS

How to Report Vehicle Expenses for IRS Tax Deduction

The IRS provides several methods for reporting vehicle expenses. The simplest method is the standard mileage rate. Here's what you'll need in order to report vehicle expenses at tax time.

company car

IRS Fringe Benefits: Personal Use of Company Car

In the US, the IRS lists 4 alternative methods for calculating the value of the personal use of a company car.

IRS

How to Calculate Vehicle Depreciation based on IRS Guidelines

If you own a vehicle that is used for business, you can claim vehicle depreciation as a business expense. In this article, we cover when and how you can do this.

IRS

IRS Mileage Rates 2023

IRS standard mileage rates are meant for employees, self-employed individuals, or other taxpayers to use in computing the deductible costs of operating an automobile for business, charitable, medical, or moving expense purpo

commute

Can I Deduct or Reimburse Commute Travel Expenses?

Commuting costs between your home and your regular place of work are generally not tax deductible. The IRS considers commuting to be a personal expense. However, if your office is at home, that's a different story...

IRS

Employee Vehicle Expenses - The IRS Accountable Plans

A short overview of the methods defined by the IRS as "accountable plans" for reimbursement of employee vehicle expenses.

IRS

2018 IRS Standard Mileage Rate for Business Travel is 54.5 cents

The IRS has recently published the standard mileage rates for 2018. Beginning on Jan. 1, 2018, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: * 54.5 cents for every mile of business travel driven, up 1 cent from the rate

tax

Tax Code for the Traveling Corporate Salesperson

Are you a traveling corporate salesperson? You know, someone who's constantly on the go. Flights and cars and hotels. You're an unsung hero, and you deserve a reward. Enter tax code policy. Not paying taxes isn’t the reward, paying LESS than you may have thought you had to is.

tax

Tax Deductible Car Usage

If you use your car for business travel, the expenses can be tax deductible. Even though your daily commute to and from work doesn’t actually count (wouldn’t it be awesome if it did?), the other expenses incurred can add up resulting in a sizable deduction at the end

IRS

Tax Deductions for Business Travel

So your boss pulls you aside and says you’re the lucky guy on the team that gets to go to Nebraska for that uber-exciting conference. While the thought of the stale bagels with a side of boiled eggs at the Days Inn Continental Breakfast is exciting, the idea of

IRS

What is a Tax Home?

If you’ve done any research regarding deductions for business travel, you’ve probably come across the enigmatic term in the title of this post. Tax home And if you’re anything like me, you also probably wondered what in the world that means exactly. By definition, a tax home

IRS

3 Accounting Tips for Growing Businesses

Odds are that if you’re running a company that’s scaling rapidly, you’ll likely experience growing pains in some form or fashion. You know, like figuring out how to secure more office space. Writing HR processes. Setting onboarding expectations and offering better training opportunities for new team members.

IRS

How To Deduct Miscellaneous Employee Business Expenses

You may be able to deduct the following miscellaneous expenses, if they were incurred in the normal course of carrying out your responsibilities as an employee: * Business bad debt of an employee. * Business liability insurance premiums. * Damages paid to a former employer for breach of an employment contract. * Depreciation on

IRS

Stress-Free Financial Statement Guide: Balance Sheets

First in a Series to help entrepreneurs, startups, and new business owners understand their financial reports. For most startups, entrepreneurs and new business owners, there is often a mystique surrounding the company’s accounting and finances. While accounting can be complex, the fundamentals of bookkeeping and financial reports can be

IRS

How to Qualify for the IRS Uncollectible (Hardship) Status, if You Are Unable to Pay Your Tax Bill

If you owe the IRS and are unable to settle your tax bill because you do not have the resources to do so; don’t panic, there might be a way out – the IRS could declare you “Uncollectible.” In order to be declared uncollectible by the IRS, you will have

IRS

Doing Charity or Out On Medical Leave? Don't miss out on these tax deductions!

Did you know that business travel is not the only type of deduction you can submit to the IRS? Trips made for charitable or medical purposes count too! Charity-related deductions Deducting mileage expenses relating to charitable activities can be handled through the Standard Charity Mileage Rate, or by deducting the

IRS

The Home Office Deduction

If you use a part of your home for your business or for your employer’s business, you can claim a deduction for the business use of your home. This deduction is referred to as the home office deduction. There are some tests that you must meet to be eligible

self-employed

2 Cases of Driving To and From Home That Are Tax-Deductible

In our previous post, we discussed the cases in which you can deduct your mileage expenses from your taxable income, using the IRS Mileage Rate. The IRS normally excludes home-work commute from "deductible mileage". However, there are two exceptions to this rule: 1. Home Office If your home is your

IRS

Do Not Use Actual Expense Deductions Until You Read This!

Business travelers in the USA have two possibilities for deducting expenses. Both methods involve keeping accurate records, but one may be superior to the other based on your situation. These methods are the Actual Expense and Standard Mileage Rate methods. The Actual Expense Method This method involves the recording of

mileage

4 Things You Need to Know About US Mileage Deductions

If you're anything like me, you drive a lot. Do you also know that some of these trips can be deducted from your income tax? This can be done through the use of the IRS Mileage rate. 1. What is the IRS Mileage rate? The IRS Mileage rate is rate