Your Tax Question - 073

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

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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

Your Tax Question - 034

Dear John, I paid a Lawyer to assemble my will. I have been told that these charges are deductible on my taxes - is this true? Sincerely, Wilma
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Hi Wilma,

The IRS accepts legal fees deductible only as those services pertain to the production of income. For instance, if you hired a lawyer to write a lease for you to use in your rental property then those fees would be deductible. Or in the case of divorce, attorney fees attributable to collecting alimony is deductible as well.

I am sorry but the fees paid to a lawyer to have your will completed is not deductible.

Thanks for the question,
John

PS. Time is running short, email me if you would like one of the remaining slots on my client list.