Tax Tips

Here’s a quick update on recent IRS activities that might affect you.

  • 2011 MILEAGE RATES RELEASED. The IRS has released adjustments to the mileage rates that can be used for business driving, charitable driving, or driving for medical or moving purposes. Effective January 1, 2011, the standard mileage rates for the use of a car, van, pickup, or panel truck will be 51 cents per mile for business miles, 19 cents for medical or moving purposes, and 14 cents for charitable driving.

 

  • NEW LAW DELAYS RETURN FILING. If you itemize deductions or claim any of three restored deductions (for state and local sales tax, higher education tuition, or educator expenses), you must wait until mid to late February to file your 2010 tax return.  The IRS must reprogram its computers to handle the changes made to these items by the “2010 Tax Relief Act” passed in late December.

 

  • IRS CHANGES FILING DEADLINE. This year the deadline for filing various tax returns normally due on April 15 is being changed to April 18, 2011. The reason?  Washington, D.C. is observing its Emancipation Day holiday on April 15, and though that’s not a national holiday, the Treasury Department has extended Tax Day 2011 to Monday, April 18. The new deadline applies to individual and partnership tax returns, extension requests, and other tax deadlines such as making 2010 IRA and education savings account contributions, and making the first 2011 estimated tax payment.

Please feel free to contact us if you have any tax questions about your horse business.  We offer free initial consultation and always enjoying visiting with horse people!

Evelyn

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One Response to Tax Tips

  1. B Flammond says:

    How do I handle culled sales of horse prospects I purchased and sold in 2010?
    Do I depreciate or 179 expense them and report them on 4797? My business is horse training and sales. I take in horses to train for others and barrel race for profit on my prospects. All horses are for sale for the right price, but not specifically purchased for sale. They are purchased for my use in barrel racing.

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