Guest Author - Kate Woods
Happy New Year to you and yours and let’s hope and believe that we will all have a year in which everything comes up roses for us all to enjoy and that we never encounter any of their thorns.
DogEared Corners, those folded corners of book pages are for you to prompt yourself or someone else to read an item or a fact, or a tip or note on that page. Visit my DogEared Corners pages for Tax Facts & Tips Etc. where I will be posting interesting items that I come across in the land of tax preparation and that I would DogEar for future reference because I think they might be of interest to many taxpayers.
•New for 2007 returns, you cannot deduct a cash contribution , regardless of the amount, unless you keep an official record for documentation such as a a cancelled check, a bank copy of a cancelled check, or a bank statement that contains the amount, date, and the recipient charity or a written statement of documentation from the charity.
•Per IRS Announcement, beginning Jan. 1, 2008, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be:
-50.5 cents per mile for business miles driven;
-19 cents per mile driven for medical or moving purposes;
-and 14 cents per mile driven in service of charitable organizations.
The new rate for business miles replaces the rate of 48.5 cents per mile for 2007. The new rate for medical and moving purposes replaces 20 cents in 2007. The rate for miles driven in service of charitable organizations remains the same.
•The favorable capital gains rates scheduled to apply through 2008 have been extended through 2010. For taxpayers with a top bracket over 15%, the 15% rate will apply. For those with a top bracket of 10% or 15%, other than for children subject to the “kiddie tax, there will be no tax –zero rate- on net gains and qualified dividends received in2008 through 2010.
•Contrary to what lenders want you to believe, not all home mortgage interest is fully deductible. Be sure to check on the limitations relating to you home mortgage facts for deductibility.
•The child tax credit for a qualifying child will remain at a top rate of $1,000 per child through 2010.
I hope you're enjoying Tax Facts on the Taxing Subject of Taxes!
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