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Free:
2009 tax calendar
(download pdf file) |
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Payroll tax Social Security Fica and Futa Limit
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Quicken
Deluxe |
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Deluxe
|
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Personal Finance made easy
Pay bills with checks or
online, create family budgets, download bank transactions,
track tax data, monitor net worth and asset allocation, plan
for retirement, college or new home, find hidden tax
deductions
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Quicken
Premier |
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Premier
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Same great features as
Quicken Deluxe Plus
Analyze investments;
Investment tutorials; Tools to minimize capital gains tax;
Morningstar ratings on your funds; Generate schedule A, B, D
tax reports.
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Quicken
Premier
Home & Business
for Schedule C filers |
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Home & Business
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Same great features as
Quicken Deluxe and Quicken Premier Plus
Create & customize
estimates & invoices; generate business reports; track
mileage; track multiple jobs per customer; accounts receivable
reports; track accounts payable; guidance for starting &
running a business.
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Take control of your
finances!
|
Click here for a great
coffee break blog
"It really is
fun reading!"
when you need a break from tax/accounting/business"
stated Linda Saltz, CPA - key pencil pusher responsible for
QBalance website! |
|
VERY FUNNY
short story
free
You deserve a
coffee break and this story makes the coffee taste even
better! Read it when you need to listen to a meeting
with one ear and can giggle internally will your other
ear!
|
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Just Say No to New
Be sure to start your reading from the
bottom of the page - it is an outrageously funny well written
ongoing saga of a Y Generation (or is it an X generation??)
quest to be environmentally responsible.
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2009 & 2010 FICA Tax (941
Tax)
limit - Fica Limit
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Social Security tax includes FICA
6.2% and Medicare 1.45%. The FICA tax limit (Social Security)
changes annually. The Medicare tax has no limit. Employer FICA
tax and Employee FICA have the same limits. Both FICA tax rate
(6.2%) and Medicare tax rate (1.45%) as a rule do not change.
In addition to FICA tax limit and Social Security Limit, other tax
limits and tax rate (s) can be found on this webpage. |
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2009 Medicare Wage Base limit
2009
Social Security Wage Base
limit
2010
Social Security Wage Base
limit
top |
Unlimited
$106,800 2009
$106,800 2010
Wow...in 2002 the limit was $87,000! That is $1,514
more in tax that the employee must pay and $1,514 more in tax paid
by the employer! |
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FUTA Tax (940)
limit |
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2009 Federal Unemployment
limit |
$ 7,000 |
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What new taxes are
coming due to the Healthcare bill?? |
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Employers
health care tax credit - If you have 10 or fewer workers with
average salaries of $25,000 and pay at least 50% of
health care premiums, your credit will be 35% of the premiums paid.
But small businesses with more than 25 employees or pay average
annual wages of over $50,000 will not qualify for a credit.
Click here to read the rev proc 2010-44 ruling on how to calculate
the tax credit.
03/22/10 Healthcare bill will be funded
in part by the wealthy.
Click here to read the
Amendment - Start reading at page 88
Nice summary of the
bill and the amendment by ria.thomsonreuteres.com
For years after 2010 employers will have to
disclose the value of the benefit provided by them for each
employee's health insurance on the W-2 Form. An Excise tax will be
imposed on high-cost employer sponsored health coverage. The tax
will be levied at the insurer level.
For tax years after 12/31/2012 A surtax
labeled "Additional Hospital Insurance Tax (HI). Hospital insurance
benefits in Medicare are funded by payroll taxes on wages and
self-employment income. Workers and employers each pay 1.45% for a
total of 2.9% medicare tax, which is collected on the workers entire earnings.
A 0.9% surtax on wages and self employment income
in excess of Modified adjusted gross income over the Threshold
amount limit ($250,000 Joint Returns, all others $200,000) will be
assessed.
For tax years after 12/31/2012 3.8% surtax of the lesser of
Net Investment income or excess of Modified adjusted gross income
over the Threshold amount limit ($250,000 Joint Returns, all others
$200,000)
Net Investment income -Sum of:
- Interest, dividends, annuities, rents
(does not include distributions from qualified retirement plans)
- Income from a trade or business (described
in paragraph 2)- Passive activity, business trading in
financial instruments, Income on investment of working capital
- Gain from sales of disposition of property
(other than property held in business)
For tax years after 12/31/2012 FSA (flexible
spending account) new limit is $2500. Currently there is no limit. |
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Shortcuts, tips, resources for payroll taxes and human
resources |
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QuickBooks
Payroll
top |
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2009 Mileage Rate &
2010 Mileage Rate
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For deducting or reimbursing
2009 business mileage on a vehicle
2010 business mileage on a vehicle
Interesting article on what auto expense is deductible |
2009 Mileage- Business rate
2010 Mileage - Business rate |
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$ .55 per mile (55
cents)
$ .50 per mile (50
cents) |
2009 Mileage- Charity rate
2010 Mileage- Charity rate |
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$
.14 per mile (14 cents)
$
.14 per mile (14 cents)
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2009 Milage -Medical and Moving
Rate
2010 Milage -Medical and Moving
Rate |
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$ .24 per mile
(24 cents)
$ .165 per
mile
(16.5 cents)
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Payroll tax rules
Part A and
Part B for
employees or owners using a company vehicle
Revenue procedure 2009-54 (year 2010) detailed discussion on
rules under which the amount of ordinary and necessary expenses of
local travel or transportation away from home are deemed
substantiated . |
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Need prior year rates? Click below
2008 rates and limits - Social Security, Mileage, Pension, 401K, IRA
2007 rates and limits - Social Security, Mileage, Pension, 401K, IRA
2006
rates and limits - Social Security, Mileage, Pension, 401K, IRA
2005 rates and limits - Social Security, Mileage, Pension, 401K, IRA
2004
rates and limits - Social Security, Mileage, Pension, 401K, IRA
2003
rates and limits - Social Security, Mileage, Pension, 401K, IRA
top |
2009 Maximum contributions and limits to pensions, IRA,
and 401 K
Click here for official source for:
2009 limitations
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Choosing a retirement plan |
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2009 Maximum employee
401K contribution limit
2010 Maximum employee
401K contribution limit
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2009 $16,500 +$5,500
(over age 50)
2010
$16,500 +$5,500
(over age 50) |
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2009 Catch up contribution
Limit
(over age 50)
2010 Catch up contribution
Limit
(over age 50) |
$ 5,500
(2009)
$ 5,500 (2010)
included in above
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2009
Employer contribution to 401K is
limited
2009
& 2010 total
additions (employer contribution plus employee contribution)
cannot exceed lesser of :
top |
Up
to 25% of compensation
2009
$49,000 or 100 % of compensation.
2010 $49,000 or
100% of compensation
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2009 & 2010 Maximum Annual
Compensation limits for determining benefits or contributions
under a qualified plan
(401(a)(17), 404(l), 408(k)(3)(C), &
408(k)(6)(D)
Note: for
(2009)
definition of a key employee in a top heavy plan is $160,000
Note: for
(2010)
definition of a key employee in a top heavy plan is $160,000
top |
$ 245,000
(2009)
$ 245,000
(2010)
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2009 Maximum Annual Defined Contribution-
Employer Contributions for 2009 to an employee SEP-IRA cannot
exceed
the lesser of the following amounts:
2009 Simplified Employee Pension
Employers contribution for employees is based on the plan
document, which cannot be more restrictive than including all
employees who performed services for the employer in the last 3 of 5
years with earnings greater than:
Employees covered under collective bargaining employees & certain
nonresident aliens may also be exclude.
Special rules apply to the self-employed. See publication 560 (www.irs.gov)
for a worksheet on how to calculate a 2009 SEP contribution for a
self employed Schedule C Filer. For the worksheet,
click
here.
Learn more- The ABCs of SEP Plans
Checklist- are you in compliance with IRS SEP rules and regs?
Pdf
top |
25% of the employee's W2 compensation
(up to $245,000 2009)
(
up
to $245,000 2010)
or
$ 49,000
(2009)
$
49,000 (2010)
$
550
(2009)
$
550 (2010)
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2009 Simple
Retirement Account (Simple IRA)
Maximum Pretax Employee contribution
2010 Simple
Retirement Account (Simple IRA)
Learn more- The ABCs of Simple Plans
Checklist- are you in compliance with IRS Simple rules and regs?
Pdf |
$ 11,500
(2009)
+ over age 50 catch up
$ 11,500 (2010)
+ over age 50 catch up
The employer contributes up to 3% of W2 wages
which is in addition to the Employee deferral max above (Maximum ER
contribution is $11,500) |
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| 2009 Simple Catch up
Deferral (over age 50)
top |
$
2,500 (
2009 and
2010)
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2009
Limit to
Traditional IRA, nondeductible IRA, or Roth IRA.
2010 Limit to
Traditional IRA, nondeductible IRA, or Roth IRA.
Who can contribute |
$ 5,000 +
over age 50 catch up
$ 5,000 + over age 50 catch up
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Hidden Financial Risk
Understanding
Off-Balance Sheet Accounting
$27.17
Explains methods by debt is hidden and the failure by
management and auditors and investors to detect and eliminate
these tools of deception |
|
IRA Catch up Deferral
(over age 50) |
$
1000 in 2009 and 2010 |
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Learn about small business pensions
Top |
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How retirement income is taxed
(pdf) |
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Top |
2009 Maximum Earnings for Retirees
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2009
Maximum retirement earnings
before
Social Security benefits are reduced
(One dollar in benefits will be withheld for every $2 in earnings
above the limit)
Retirement Age from 65 to 67 depending upon Year of Birth |
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Normal Retirement Age Year of
birth Age
1937 and prior 65
1938 65 and 2 months
1939 65 and 4 months
1940 65 and 6 months
1941 65 and 8 months
1942 65 and 10 months
1943-54 66
1955 66 and 2 months
1956 66 and 4 months
1957 66 and 6 months
1958 66 and 8 months
1959 66 and 10 months
1960 and later 67 |
Over
Retirement Age
Under Age:
2009 under full retirement age reduction begins
2010 under full retirement age reduction begins
The year an individual reaches retirement age:
2009 reduction begins
2010 reduction begins
Apples only to earnings for months prior to attaining full
retirement age. $1 in benefits will be withheld for ever $3 in
earnings above limit
top |
unlimited earnings permitted - no reduction
earnings over $ 14,160 ($1180/mo)
earnings over $ 14,160 ($1180/mo)
earnings over $37,680/yr ($3140/mo)
earnings over $37,680/yr (3140/mo) |
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In the year the individual reaches full
retirement age, earnings months prior to attaining full
retirement age - One dollar in benefits will be withheld for every
$3 in earnings above the limit of $37,680 (2009 &
2010) |
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Minimum Wage hourly rates
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Best Sellers!
$12.23
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QuickBooks For Dummies
$15.61 |
|
Link to a chart of all States Minimum Wage rates |
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Federal
minimum wage
Top |
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Individual Rates
Original
2009 Source
Original
2010 source
$ 5,700 2010 Standard deduction for
Single
$ 5,700 2009 Standard
deduction for Married filing separate
$ 5,700 2010 Standard deduction for
Married filing separate
$ 8,350 2009 Standard deduction for Head of
household
$ 8,400 2010 Standard
deduction for Head of household
$11,400 2009 Standard deduction for Married filing Joint
$11,400 2010 Standard deduction for Married filing Joint
Exemption amount 2009 $3,650
2010 $3,650
2009
Deduction for personal exemption phase out begins
Single $166,800-289,300
Married $250,200-372,700
HOH $208,500-331,000
**2010
Phaseout: The phaseout of the
personal exemption amount under § 151(d)(3) does not apply
to any taxable year beginning after December 31, 2009, and
before January 1, 2011.
Accordingly, the exemption amount for taxpayers with
adjusted gross income in excessof the maximum phaseout
amount and the maximum adjusted gross income phaseout
amounts are not included in the 2010 revenue procedure.
2009 Deduction for itemized deductions phase out
begins when
AGI Threshold
Married, Single, HOH $159,950
Married Filing Separate $79,975
2010 Phaseout:
The overall limitation on itemized
deductions under § 68 does not apply to any
taxable year beginning after December 31, 2009, and before
January 1, 2011.
Accordingly, the overall limitation on itemized deductions is
not included in this revenue
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Click here to view IRS website containing these 2009 rates
For tax forms and extensions to file individual tax returns click
here
2009 Tax Rates
|
2009 Individual Tax Rates |
10% |
15% |
25% |
28% |
33% |
35% |
|
Single |
8,350 |
next 25,600
to 33,950 |
next
48,300 to 82,250 |
next 89,300
to 171,550 |
next 201,400
to 372,950 |
amounts over
372,950 |
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Head Of Household |
11,950 |
next 33,550
to 45,500 |
next 71,950
to 117,450 |
next 72,750
to 190,200 |
next 182,750 to
372,950 |
amounts over
372,950 |
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Married Joint |
16,700 |
next 51,200
to 67,900 |
next 69,150
to 137,050 |
next 71,800
to 208,850 |
next 164,100 to 372,950 |
amounts over
372,950 |
Click here to view IRS website containing these 2009 rates
For tax forms and extensions to file individual tax returns click
here
2010 Tax Rates
|
2009 Individual Tax Rates |
10% |
15% |
25% |
28% |
33% |
35% |
|
Single |
8,375 |
next 25,625
to 34,000 |
next 48,400 to 82,400 |
next 89,450
to 171,850 |
next 201,800
to 373,650 |
amounts over
373,650 |
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Head Of Household |
11,950 |
next 33,600
to 45,550 |
next 72,100
to 117,650 |
next 72,900
to 190,550 |
next 183,100 to 373,650 |
amounts over
373,650 |
|
Married Joint |
16,750 |
next 51,250
to 68,000 |
next 69,300
to 137,300 |
next 71,950
to 209,250 |
next 164,400 to 373,650 |
amounts over
373,650 |
Click here to view IRS website containing these rates
Top |
Click here for: 2009
Corporate Rates
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TurboTax Business
+ QuickBooks
+ Set-up Assistance
=
Save Money
Year after Year |
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top |
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Federal gift tax exclusion-
click on annual exclusion
Taxable gifts count as part of the $1 million you are allowed to
give away during your lifetime before you must pay Gift Tax.
These exclusions do not count towards the $1 million.
2006-2008 Estate Tax Applicable Exclusion Amount
2009 Estate Tax Applicable Exclusion Amount
2010 Estate Tax - No tax
therefore no exclusion- This may change retroactively!
top
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$ 13,000 (2009 and
2010)
$2,000,000
$3,500,000
None |
|
Self Employed Health Insurance Deduction
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Deductible Percentage
for
2009 health insurance premiums
100%
top |
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Health Savings Accounts (HSA)
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High Deductible Health Plan and Contribution Limits
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2009 limits
| |
Maximum HSA Contribution Limit |
Minimum
Policy Deductible |
Annual out-of- pocket does not exceed |
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2009 Self -only coverage annual deductible |
$3,000
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$1,150 |
$5,800 |
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2009 Family coverage annual deductible |
$5,950 |
$2,300 |
$11,600 |
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2010 Limits |
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2010 Self -only coverage annual deductible |
$3050 |
$1,200 |
$5,950 |
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2010 Family coverage annual deductible |
$6150 |
$2,400 |
$11,950 |
Over Age 55 Catch up
contribution is $1000
Individuals who are eligible individuals on the first day of
the last month of the taxable year (December for most
taxpayers) are allowed the full annual contribution (plus
catch up contribution, if 55 or older by year end), regardless
of the number of months the individual was an eligible
individual in the year. For individuals who are no longer
eligible individuals on that date, both the HSA contribution
and catch up contribution apply pro rata based on the number
of months of the year a taxpayer is an eligible individual.
If you withdraw funds from an HSA before
age 65 and used those funds for purposes other than qualified
medical expenses there is a penalty tax of and additional 10%.
In 2011 that penalty increases to 20%. |
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Learn more about Health Savings Accounts and administrative
requirements |
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Travel Reimbursement Rules for Lodging, Meals &
Incidental Expenses |
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See Revenue Ruling for details on flat rate
reimbursement plans Meals
while away on business
50% deductible
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2009
Section 179 depreciation
$250,000
2010 Limit $134,000 (This may
change!!)
2010 Limit Section 179 $250,000 (3/11/10
Bill HR 2847)
The amount of investment qualifying for this
immediate deduction begins to phase out for small businesses with
investment in excess of $800,000
Regs now permit Section 179 on off-the-shelf
software
Leasehold property placed in service
before 1/1/2006 - 15 year SL
(subsequent owners of the leasehold property required to depreciate
over 39 Years)
Elect to deduct $5000 start-up & $5000
organizational expenses in the year the business begins.
Effective for expenses incurred after 10/22/04. Be sure to read more
on the details of this rule.
Deductions reduced by the amount of which
the cumulative cost of start-up or organizational expenditures
exceed $50,000 respectively
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Luxury Auto depreciation rules: |
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A car is
defined as a four-wheel passenger automobile designed for use
on public roads and is rated at 6,000 pounds or less
unloaded gross vehicle weight
|
1st year depreciation limit |
$2960 (2009)
($10,960 for automobiles for which
the special depreciation allowance applies)
Caution. These limits are reduced if the
business use of the vehicle is less than 100% |
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Maximum deduction you can take for a truck
or van you use in your business and first placed in service in
2009 |
1st year depreciation limit |
$3060 (2009)
Caution. These limits are reduced if the
business use of the vehicle is less than 100% |
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Special use vehicles (over 6000lbs loaded) now
exempt from luxury auto rules and can be deducted under section 179
|
SUVs (over 6000lbs)
Heavy Trucks & Vans
read more |
Not updated for 2009 limits
Not updated for 2009 limits |
Publication 946 has a nice table for limits on
depreciation of vehicles
top
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3 years from tax period due
date or 3 years from date original return received whichever is
later
unless the taxpayer fails to include on a return any information
with respect to a
listed transaction
then the statute of limitations will not expire before 1 year after
the Secretary is furnished with the information.
See more-Statute of Limitations guidelines
see also
How long should you retain your receipts
and business documents |
|
Tax Tips from the IRS
|
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Click to
view tax tips at
www.IRS.Gov |
|
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IRS
Circular 230 Disclosure: To ensure compliance with
requirements imposed by the IRS, we inform you that, any U.S.
federal tax advice contained in this communication (including any
attachments) is not intended or written to be used, and cannot be
used, for the purpose of (i) avoiding any tax related penalties that
may be imposed on you or any other person under the Internal Revenue
Code or (ii) promoting, marketing, or recommending to another party
any transaction or matter addressed in this communication |
