For the most part it just extends tax policy that is
currently in place. There is one notable change: You will
see a bump in your take-home pay for 2011 only due to a
reduction in Social Security
withholding.
For 2011, you will pay 4.2% of your wages up to $106,800
instead of 6.2%. The employer’s share of Social Security
tax remains at 6.2%.
Auto Mileage
The optional standard mileage rates used to calculate the
deductible costs of
operating an automobile for business, charity, medical or
moving purposes have now been released for 2011 by the
IRS:
Meal
Deductions
For meal expenses associated with
away-from-home business travel that involves multiple
cities with potentially different per diem meal expenses,
you may now (after September 30, 2010) use a standard $59
per day rate.
Business Gift Deductions
If you are giving business gifts
this year, remember that you can only deduct up to $25 per
individual.
Reminder on Tax Deductible Bills
Just a reminder for year-end
planning: Be sure all of your tax deductible bills,
including property taxes, are paid by December 31st.
More to come…
Joe
Learn more about
Joe DePetris, Jr., and IBO tax return preparation
and tax issues at
IBO Bookkeeping 101.
Find more Tax Tips for IBOs from Joe DePetris, Jr., CPA.
This article is provided as an
educational resource for your guidance, and is
strictly informational. It does not constitute
legal, accounting, or other professional
counsel. Nothing included herein implies a
recommendation by the author, the
IBOA International, or
Amway North America, of any course or method of
regulatory compliance. Readers and users who
intend to take, or refrain from taking, any
action based on information contained herein
should first consult with their qualified tax
advisor, preferably a C.P.A., or appropriate
regulatory authorities.
