You know (or should know) that the IRS changes the business milage rate each year (sometimes every six months) as well as the medical milage rate. But maybe you don’t know that the charitable milage rate never changes. I think it has been at 14 cents a mile since I was in high school (actually it has been the same since 1997). It is set by law and until Congress votes to change it, it will stay at 14 cents. Don’t hold your breath waiting for it to change.
Brian’s Tax Musings
If you have an S Corporation, as a 2% or more shareholder so are not allowed a medical reimbursement plan; you must take an medical reimbursements as salary or a distribution. If you take your medical insurance as salary, you can deduct it on the front of your return, thereby reducing your AGI, but all other medical deductions can only be taken as itemized deductions, thereby not making it different from paying for them personally.Remember, you can have a medical reimbursement plan for less than 2% shareholder employees, just not for the owners of the corporation. This is one time a C Corporation is superior to an S Corporation. Email me at bstonercpa@sbcglobal.net if you have more questions on this.
Brian’s Tax Musings
Remember you can either expense new computer equipment purchased in 2011 under section 179 or take 100% bonus depreciation, which means you can take a big fat writeoff this year for all your computer upgrades. If you need help with installation and keeping your network and systems up and running, the guy who has been helping me with my new system upgrades and purchases is Garett Chipman at TVG Consulting – here is his contact information:TVG Computer Consulting Corp.- Managed IT Services CEO, Providing IT Operations and Technical Support Services Tel. (818) 579-7370 x 205Tel. (Support Desk) (818) 579-7370 x200E-Mail: Garett@tvgconsulting.com “We function as your business partner to provide top-of-the-line services without the cost of full-time IT employees.”Garett also told me about this deal he has: TVG is giving away free Microsoft Network, Security and Stability Audit for Free. (a $595 value) since you are a Brian’s Tax Musings reader, TVG is allocating 10 FREE audit just for being a reader. Let TVG know you are a reader when you email.You have to have 5 desktops and a server. Please email Garett directly: Garett@tvgconsulting.com