IRS Adjusts Mileage Deductions As Fuel Prices Spike We are from the IRS and we’re here to help you. Most people would smirk at such a statement, but the agency is actually very proactive when taxpayers face a universal issue like the current spikes in gasoline prices. One of the great deductions available in the tax code is the business mileage deduction. If you drive on business matters, you can deduct the mileage at the end of the year by multiplying your total miles by a figure set by the IRS. How does the IRS determine the business mileage deduction rate? It is a hodge podge of factors including car insurance, vehicle depreciation and fuel costs. When one of these goes up, the IRS reacts to its credit. The IRS uses projections to come up with a figure before each year begins to let taxpayers know what to expect. This year, the deduction rate was set at 50.5 cents for every business mile incurred. Although the milege deduction rate is usually not changed, there is precedent for doing so. When prices are serious effected, the IRS can act on its own as it did during Katrina when gas prices shot up do to gas shortages in the South. Whether it is profiteering, a weak dollar, peak oil or some other reason, oil prices have shot up in 2008. In San Diego, we are closing in on $5 a gallon. This is in comparison to 2002 when we were paying only $1.75 for the same gas. While the rest of the government twiddles its collective thumbs, the IRS is doing something to help people. Who would’ve guessed it? The agency has cranked the business deduction rate up to 58.5 cents for the remainder of 2008. How do I come up with a total deduction if there are two rate amounts? Split your mileage for the year into before and after June 30th figures. Multiply by the corresponding rate. Add the totals together and you have the deduction. Business miles are not the only transportation deduction getting a bump. You can deduct mileage incurred for moving for a job. The rate for the first six months of 2008 is 19 cents, but the final six months now have a rate of 27 cents. The tax code also contains a provision for a deduction for mileage incurred while helping a charity. The IRS does not control this deduction. Only Congress can modify it. As such, there is no change for fuel prices. Fuel prices are projected to only go higher for the foreseeable future. While the bump in the mileage deduction helps, it may not be the last one in 2008. Keep an eye out for more changes. »

Buy Dallas Real Estate Instead of Renting

by Jordan FeRoss

If you are relocating to Dallas you know that buying real estate over renting makes better financial sense.

Are you torn with the question, “Should I rent a home, or should I purchase some Dallas Real Estate”? Purchasing Dallas Real Estate is always the best option. If you rent, then your monthly payments are going to building equity for your landlord. When you purchase Dallas real estate, then your monthly payments are building equity for you and your family. There are many other benefits to purchasing Dallas real estate such as the benefit of being able to deduct your mortgage interest from your federal taxes, and the borrowing power that the equity in your home provides you, not to mention the pride of home ownership!

Having a family can make it hard and pricey to locate a lease home that has the right amount of room that is needed for you and your entire family. It is not uncommon for folks with families to end up spending more in rent for a lease home than what they might pay for a monthly mortgage payment if they had just purchased a home.

Many people lease homes instead of buying for one main reason when relocating to a new city is because they are uncertain what part of the big city they want to live in. One of the other reasons people rent over buy is temporary job status. Now, if you have the job security and the credit needed then with the services of a great Dallas real estate agent you can find some nice homes for sale and you can complete the entire process of buying a home as easily as you could leasing a property.

A good Dallas real estate agent can provide you with Internet videos, photos, land surveys and other information about the property that will be just as good as if you were actually seeing the property for yourself and you can apply for a mortgage and start working with a lender the same way that you would apply for a rental home and start working with a landlord.

Is the worry of coming up with a down payment to purchase Dallas real estate what is holding you back? Not a problem! Now that you are working with your Dallas real estate agent and your new lender, you can check your credit to see if you qualify for a zero money down mortgage.

If you buy a piece of Dallas real estate with a no money down mortgage you could end up buying Dallas real estate and living in your own home and paying less than you would have to pay to get into a new apartment because if you were moving into a new apartment you’d have to put down the first and last month’s rent plus a security deposit. And if you have a family and need to rent a house or a very large apartment the first and last month’s rent plus the security deposit could be a very large amount of money that you would have to come up with.

When comparing renting vs. buying you will find that you can actually save money when you buy Dallas real estate instead over rent.

About the Author:
This short article is compliments of Jordan FeRoss. If you are interested in dallas real estate then you should consider view some of our Dallas homes for sale available.



   Posted in Finance    

Subscribe RSS 2.0 feed. Leave a response, or Trackback from your own site.






Leave a Reply