Tag Archives: SMR

Updated Mileage Rate for 2015

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a car is on a calculator. cost of gasoline, wear and insurance.With the new year comes change, and in this case, an updated Standard Mileage Rate (SMR) from the IRS.

For business miles driven in 2015, the SMR is 57.5 cents per mile, up from 56.0 cents in 2014. This increase in the rate is even better when one considers the plunge in gas prices over the last six months – locally we’re seeing regular unleaded under $2.00 per gallon, and in some places under $1.90.

A bigger deduction that costs less to create? That’s an unusual win-win for taxpayers.

Also, remember to keep a mileage log showing the miles driven, the date, and what the business purpose was. This comes up routinely on audit, and not having the documentation is one of the biggest ways taxpayers end up owing the government.

About the author

Brady is the owner of Ramsay & Associates. He specializes in financial statement preparation and personal, fiduciary and corporate tax and accounting.

His professional experience includes seven years' experience for local and national CPA firms before joining Ramsay & Associates in 2006.

He has a Bachelor of Accounting degree from the University of Minnesota Duluth. He is a Certified Public Accountant, a member of the Minnesota Society of CPA's, an Eagle Scout, as well as an active volunteer in the community.

2014 IRS Standard Mileage Rates

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The IRS recently announced the standard mileage rates for 2014.SMR Image  The rates will actually decrease by .5 cents per mile for both business use and medical and moving mileage.

The new standard mileage rate for business for 2014 will be 56 cents per mile.  The 2014 rate for moving and medical mileage will be 23.5 cents per mile.

This is also a good opportunity to remind everyone of the importance of keeping a mileage log.  If your mileage deduction ever comes under audit, the IRS will expect to see a log of the miles driven and the purpose for the miles.  You can use a simple notepad in your car, or one of a variety of mobile apps to help you log all the miles you drive and make your log easier to complete.

About the author

Brady is the owner of Ramsay & Associates. He specializes in financial statement preparation and personal, fiduciary and corporate tax and accounting.

His professional experience includes seven years' experience for local and national CPA firms before joining Ramsay & Associates in 2006.

He has a Bachelor of Accounting degree from the University of Minnesota Duluth. He is a Certified Public Accountant, a member of the Minnesota Society of CPA's, an Eagle Scout, as well as an active volunteer in the community.

Tax Season Update

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Tax season moves quickly, and at the end of this week, there will be a short four weeks left until the individual tax deadline is upon us.   There have been a number of developments since our last posting, so below you’ll find some of the highlights you may have missed.

  • The IRS has gotten its computer systems up to date with the “Fiscal Cliff” legislation, passed in early January. This means all tax returns can now be filed, as the final forms have been released, and tax software providers have gotten their updates in place. This is a full three weeks faster than anyone expected.
  • Intuit, the maker of TurboTax, as well as several professional-grade tax software programs, ran into significant issues with the Minnesota tax return, leading to about 10,000 tax returns being delayed. Intuit had until today to get the issues corrected, and says they have notified anyone who was affected.  We use a different software provider.  This is a great example of the importance of having a tax professional working for you – the software can’t always be trusted to get the right result.
  • Governor Dayton removed the “business to business” sales tax from his proposed budget, which is great news. If left in place, professional services, like accounting and legal services would have been subject to sales tax.
  • The Standard Mileage Rate for business miles driven in 2013 is 56.5 cents per mile.

Corporate taxes are due by this Friday, March 15th, and as always, we’re here to help with your tax and accounting needs.

IRS Updates for 2012

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The IRS announced December 12th that the standard mileage rate used for businesses will stay at the current level of 55.5 cents per mile for 2012.

In addition, personal and dependency exemptions on the personal return will be worth $3,800 each, and each of the standard deductions moved slightly higher as well.  Also, the maximum amount of wages subject to Social Security taxes will move up $3,300, to $110,100 per person.

Debate continues to rage on extending the payroll tax holiday currently in place.  We’ll stay tuned to the latest coming out of Washington.

IRS Releases 2011 Mileage Rates

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            The IRS recently released the standard mileage rates for business mileage, as well as mileage driven to obtain medical treatment during 2011. The business rate will be $.51, while the medical mileage rate will be $.19. Both of these are increased over 2010.

            This release is a great reminder to be sure to track your mileage during the year for business, medical, and charitable purposes. The recommended way to do this is through a mileage log, as the IRS has been placing more importance on the documentation of mileage during audits.