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This Week in the iNews:

▲ IRS LOWERS DEDUCTIBLE MILEAGE RATES

▲  LUNCH & LEARN SERIES PROGRAM #5 – PART 2 - YEAR END TAX PLANNING

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▲ IRS Lowers Deductible Mileage Rates

The Internal Revenue Service has reduced the 2009 optional standard mileage rates used to calculate the deductible costs of operating an automobile, citing lower gas prices.

Beginning on Jan. 1, 2009, the standard mileage rates for the use of a car, van, pickup or panel truck will be 55 cents per mile for business miles driven, 24 cents per mile driven for medical or moving purposes, and 14 cents per mile driven in service of charitable organizations.

The new rates for business, medical and moving purposes are slightly lower than rates for the second half of 2008 that were raised by a special adjustment mid-year in response to a spike in gasoline prices. The rate for charitable purposes is set by law and is unchanged from 2008.

The business mileage rate was 50.5 cents in the first half of 2008 and 58.5 cents in the second half. The medical and moving rate was 19 cents in the first half and 27 cents in the second half.

The mileage rates for 2009 reflect generally higher transportation costs compared to a year ago, but the rates also factor in the recent reversal of rising gasoline prices. While gasoline is a significant factor in the mileage rate, other fixed and variable costs, such as depreciation, enter the calculation.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously. Taxpayers also have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rate.

 ▲ Lunch & Learn Series Program # 5 – Part 2 - Year End Tax Planning

Please join us for the last program for 2008 of our Lunch & Learn Series at noon on Tuesday, December 16, 2008 in the Prangley Marks, LLP lunch/conference room.  This is the second in our two-part series on year end tax planning. We will also have an update on year payroll, W-2 and 1099 issues.  Bring your year end tax planning or accounting issues for discussion.  There will only be two weeks until the end of the year, so there still may be time!

Please contact mripley@pmcpa.com or call (616) 774-9004 to reserve your spot.

Complimentary lunch, program and parking provided.

Seating is limited.