Questions about the standard IRS mileage allowance
Q.I am wondering if someone could take the time to answer a couple of questions about the standard IRS mileage allowance, 1. Re: automobile expense- I am aware that auto expenses as they relate to church work can be claimed musch the same as anybody that is employed and it is required as part of their employment to drive their own car. If they receive an allowance do they deduct the allowance from their total claim? I am aware that it is a taxable benefit that will apear on a T4. 2. Miscellaneous costs- such as taking someone out for a meal or coffee or suchlike that is church related- is this considered an entertainment expense and as such be deducted at 50%? If that is true where do I file that information? Which form should one use?
A.If you submit an expense report to the church for the number of miles driven on church business, and the church reimburses you at not more than the standard IRS mileage allowance, the reimbursement won't show up on your W-2 and won't be taxable. For reasons of privacy, you should retain the detail of the actual business mileage. If you receive a fixed monthly allowance, it will be included in the W-2. See below for treatment. Same thing goes here: if you are reimbursed based on an expense report, no taxable income, and no reporting on your tax return. Otherwise, see next paragraph. If you don't get reimbursement based on expense reports, you will have to use Form 2106 (employee business expenses). In order to get an income tax benefit for the expenses, you need to (a) itemize deductions on Schedule A and (b) have miscellaneous itemized deductions exceed 2% of adjusted gross income. Even if you can't use these expenses to reduce your income tax, you can use them to reduce the self-employment income on Schedule SE
Other Questions :
2006 Calculator Irs Tax software
I've heard about 2006 Calculator Irs Tax software .Does anyone give me some detail about it ?where to buy , how to used...Thank for your help"True tax Calculator 2005" is an Income tax calculator for the Assessment Year 2005-06., specially design...
Irs Phone Number
There's a phone number you can call to get transcripts of your taxes. Does anyone know what it is?Check out these links .... 0597 Form 4506 Request for Copy or Transcript of Tax Form ( 35K) Adobe PDF http://ftp.fedworld.gov/pub/irs-pdf/f4506...
AOS Filing - What IRS tax info. do I need to provide?
I am preparing the documents for my AOS filing, however, I was wondering what IRS tax info. I need to provide? My wife and I have filed jointly for the last 3 years. Do we need to provide all 3 years of info. or is the last year enough?I have a...
IRS audit flag questions ?
I have a question on how I will divide up the mortgage interest deduction for the tax year that I moved out of my house for a pending divorce. If I lived in the house for 3 months of 2004, on my 2004 taxes could I legally take 3/12 of the mortg...
You guys have just audited by IRS. Need some help. We're looking for a tax and financial planning profession in the North Dallas area.
You guys have just audited by IRS. Need some help. We're looking for a tax and financial planning profession in the North Dallas area. The zip code is 75287. Anybody close by?In most states, anyone can call themselves a tax preparer. With co...