Latest News & Announcements

Manufacturers' Deduction
April 29, 2006 :: 10:22 PM

This new deduction is available for businesses in these areas:

  • Traditional manufacturing
  • Construction
  • Engineering
  • Energy production
  • Computer software
  • Films and videotape
  • Processing of agricultural products

When fully phased in by 2010, the deduction will be equal to nine percent of the lesser of qualified production activities income for the year, or taxable income for the year. The deduction starts at a transition percentage of 3 percent for 2005 and 2006, rising to 6 percent for 2007 through 2009. Treasury and the IRS will need to draft regulations as to what the spectrum of business activities (categories of businesses within the ranges named above) qualify as manufacturing. Planning should be anticipated in order to position your business properly in order to qualify.

Small Business Expensing
April 29, 2006 :: 10:20 PM
The total cost of property that can be expensed each year is limited to $100,000m indexed for inflation. The 2006 expensing limit is $108,000.
Vehicle Donations
April 29, 2006 :: 10:20 PM
Congress limited the deduction for vehicles contributed to charity. The amount of the deduction will depend on how the doner organization uses the vehicle. If the charity sells the vehicle without using the vehicle in any significant way, the amount of the charitable deduction cannot exceed the gross proceeds from the sale. The taxpayer also must produce an acknowledgment as to value from the charity if the charity keeps the vehicle for it own use.
Mileage reimbursements set by IRS for 2007
April 01, 2006 :: 10:06 AM
The IRS has announced the 2007 optional standard mileage rate used to calculate the deductible costs of operating an automobile for business, charitable, or moving purposes.

For 2007, the rates are

  • 48.5 cents per mile for business miles driven
  • 20 cents per mile for medical mor moving purposes
  • 14 cents per mile driven in service to a charitable organization
    • Tax Deadline Is Looming
    April 01, 2006 :: 09:00 AM
    Yes, it is that time of the year once again where we are heading into the final stretch. If you have not gathered your materials together for your yearly filing, it may be time to think about filing that extension. If you have any questions about getting your taxes filed in time or need help with that extension be sure to contact my office as soon as possible to get the ball rolling. Don't miss your chance, fliling an extension is easier to file than you may think.