Your Tax Question - 075

Dear John, I am considering starting a small business - what do you think?  Seriously, James
---
Hi James, 


That is seriously a vague question.  While there is a thousand ways to go with that I will just say that I heartily approve.  The way that you set up your business needs to be considered because it will determine what rules you will have to follow while doing business and filing your taxes.  The more complicated the business the more you will need to follow the advice of an accountant, CPA, and or attorney.  Other than that, there is a lot of consideration so get ready to roll your sleeves up and have fun.


Best of luck,
John   

PS.  Please send me an email if you want to buy an hour or two of consultation. 

Your Tax Question - 073

Dear John, What is the current deduction that I can take for miles that I drive? Larry

---

Hi Larry,

The Standard Mileage Rate varies from purpose to purpose. Business purposes, Medical & Moving purposes, and Charitable purposes. For 2011 there are two sets of deductions to be considered. From 1/1/11-6/30/11 the rates are $.51, $.19, & $.14 respectfully. Then as of 7/1/11-12/31/11 the rates change to $.555, $.235, & $.14 respectfully.

For information about deducting mileage on your vehicle for business or moving you should refer to IRS:

Topic 510 - Business Use of Car or

Topic 455 - Moving Expenses

I hope this helps you.

Thanks,

John