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IRS Tax Information for Business Vehicles
The Internal Revenue Service (IRS) offers a section on its website (http://www.irs.gov/) for business with valuable information on how to prepare for and file business taxes. The website provides articles on the latest updates in the tax laws that can make a difference in what you can claim as a business deduction.
Changes in Tax Laws
The changes in the tax laws tend to reflect the current economic situation and impact how much money you will get back on your business tax refund. For example, some of the changes beginning 2009 are as follows:
The standard mileage rate for the use of a car, van, pickup or panel truck is 55 cents for business miles driven. The 2009 mileage rates are intended to cover generally higher transportation costs compared to 2008 and the reversal of the spike in gasoline prices. Taxpayers have the option of calculating the actual costs of operating the vehicle rather than using the standard mileage rates. The business standard mileage rates cannot be applied when:
Claiming any depreciation method under the Modified Accelerated Cost Recovery System (MACRS)
Claiming a Section 179 deduction for the vehicle
The vehicle is used for hire
There are more than four vehicles used simultaneously
Individuals and businesses with 25 or more tractors, trucks or other vehicles used on highways need to take note of the change in how they make their excise tax filings. They must now make these filings electronically with the IRS electronically, rather than by paper. The form that is used is called the Heavy Vehicle Use Tax Return, Form 2290. It is used to make a report and payment on highway-use excise taxes. In 2008 trucking companies filed more than 700,000 of these forms and paid out more than $1 billion in federal highway use taxes.
Using the electronic filing system means gives taxpayers the advantage of not needing to wait for a stamped paper version of the Schedule of Heavy Highway Vehicles since they receive an electronic equivalent instantly. Truckers won’t have to wait any more to register their vehicles with the state.
Choose an Approved Provider
Taxpayers need to be aware of the fact they must chose an approved transmitter/software provider for Form 2290. A list of approved providers can be obtained from the IRS website. Many of the other forms used for business vehicles can also be filed electronically, saving time and money for business owners.
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Source by Ilya Bodner