Now that the April 15th deadline is behind us, the best personal finance advice you can take is to start planning for your 2010 Income Taxes now. That way, you will be ready to take advantage of all the 2010 tax tricks, tips and deductions you can.
Sure, last minute tax advice and finding those hidden tax deductions during crunch time is great, but to really save money on taxes, you have to plan all year long. Start watching now for expenses that you can deduct from your taxes and start keeping records and receipts for all of those possible tax deductions that might be usable to lower your taxes if you meet certain requirements or minimum thresholds. Most importantly, start keeping your contemporaneous records of important deductible expenses like business mileage, unreimbursed expenses, training and education expenses, and medical expenses.
IRS 2010 Standard Mileage Deduction Rate
The standard mileage rate for 2010 is 50 cents per mile for business reasons. The 2010 standard mileage rate for miles driven for charitable purposes is 14 cents per mile.
You can deduct all unreimbursed mileage driven for business reasons and most charitable reasons as long as you have written documentation of the miles driven. These records must be "contemporaneous," which basically means that you need to create the record as it happens. In other words, you need to be recording your mileage in a little mileage log book every time you drive somewhere. Creating a log at the end of the year won’t cut it.
There is no need to buy a mileage log specifically, however, many people find it useful to have the format for recording their business trips in place. It can also make filling in the data easier. Most importantly, by completely filling out one of the mileage logs that you get at an office supply store like Office Depot or Staples is that you can be sure that you are writing down all the information that is required to take the standard business mileage rate for 2010 deduction from your taxes. Otherwise, any notebook will do. Write down your starting and ending mileage (use the main odometer reading, not just the trip odometer) and the total miles. Be sure to note whether that is one-way or round trip. Also note what the business reason was for making the trip.
Related posts:
- How To Deduct Mortgage Interest on Income Taxes
- 2011 Roth IRA Income Limits
- Reporting Short Sales for Income Taxes
Tags: 2010 tax numbers, Business, Deductions, income taxes, Mileage, mileage rate, Taxes
