Mileage Rates 2010

[Snaggletooth]

I'm sure everyone twisted their ears when IRS announced the standard mileage rate for 2010 was being reduced from 55 cents to 50 cents.

OK - wonder what they were thinking, but we suppose it can be lived with.

What about the reduction for medical miles from 24 cents to 16.5 cents? WOW. Also I've been hearing the threshhold for medical is going up from 7.5% to 10%, although this is not enacted yet. I remember when the threshhold was raised from 3.0% to 5.0%, then from 5.0% to 7.5%.

In other words, Govt is not going to do a thing to help control medical costs, but they're going to make sure they don't pay for them.

[Jiggers]

If the government wanted to help with medical.......

I'm sure everyone twisted their ears when IRS announced the standard mileage rate for 2010 was being reduced from 55 cents to 50 cents.

OK - wonder what they were thinking, but we suppose it can be lived with.

What about the reduction for medical miles from 24 cents to 16.5 cents? WOW. Also I've been hearing the threshhold for medical is going up from 7.5% to 10%, although this is not enacted yet. I remember when the threshhold was raised from 3.0% to 5.0%, then from 5.0% to 7.5%.

In other words, Govt is not going to do a thing to help control medical costs, but they're going to make sure they don't pay for them.

If Congress and our Prez really wanted to help with the medical expense problem, they would make all medical deductible without the 7½% haircut.

They would also make self-employed health insurance deductible on Schedule C which would reduce SE Tax.

If they wanted to help the auto industry, they would make the interest paid on vehicle purchases deductible without itemizing!

If they wanted to help manufacturing and employment, put back in the investment tax credit on American made in the USA made equipment that businesses buy.

But all this makes sense and it won't be done.

[taxxcpa]

I agree

If Congress and our Prez really wanted to help with the medical expense problem, they would make all medical deductible without the 7½% haircut.

They would also make self-employed health insurance deductible on Schedule C which would reduce SE Tax.

If they wanted to help the auto industry, they would make the interest paid on vehicle purchases deductible without itemizing!

If they wanted to help manufacturing and employment, put back in the investment tax credit on American made in the USA made equipment that businesses buy.

But all this makes sense and it won't be done.

Everything you say makes more sense than all of the gimmicks the government has implemented or proposed.
I've always contended that employee business expense and medical expense should be 100% deductible since they are non-discretionary and hard to avoid.

[Gretel]

Jiggers and Taxxcpa, I agree with you. Great suggestions. Have you contacted your Congress man and the Obama Administration with this?

[Maribeth]

If Congress and our Prez really wanted to help with the medical expense problem, they would make all medical deductible without the 7½% haircut.

They would also make self-employed health insurance deductible on Schedule C which would reduce SE Tax.

If they wanted to help the auto industry, they would make the interest paid on vehicle purchases deductible without itemizing!

If they wanted to help manufacturing and employment, put back in the investment tax credit on American made in the USA made equipment that businesses buy.

But all this makes sense and it won't be done.

Amen, Amen, Amen. All of the above have been on my soapbox for years now. But instead of a sensible tax code, to spur the economy and actually help Americans with some of their basic expenses, what do we get? More tax credits for indescriminate procreation and a sub-population of Americans that should not be having babies but are having babies for the money.

Just my two cents worth and yes, I am not having a good day today.

Maribeth

[TAX4US]

I did notify my con-gress-man about certain issues like those stated above and added a comment that went something like this: Leave the tax system alone for 2-3 years so we could do decent planning. I got one of those responces like thank you for your concerns.
Any way my 2 cents. Have not seen the one for 10% on medical though, all tho AMT could make short work of this one.

[Peachie]

Is this correct or am I reading it wrong?

If they wanted to help the auto industry, they would make the interest paid on vehicle purchases deductible without itemizing!

But all this makes sense and it won't be done.

You can't take off automobile interest right. Isn't this considered consumer interest and not deductible?

Your other points are well taken.

Peachie

[Jiggers]

Personal interest

You can't take off automobile interest right. Isn't this considered consumer interest and not deductible?

Your other points are well taken.

Peachie

I was just suggesting that to help the auto industry that you should be able to deduct the auto interest. I know you can't write it off as an itemized deduction. Just wasn't clear enough, I guess.

[Edsel]

Auto Leasing

Most new cars today are moved by "selling" them under a lease. The appeal is to reduce monthly payments by giving the seller the equity in the auto after the buyer is no longer "upside down." I consider this a sham, but lots of cars are sold this way.

The problem is there is no stated interest, only lease payments. Would be difficult for the buyer to deduct interest, although I do think that would help the economy. I am very much in tune with Jiggers' suggestion that bringing back these targeted tax breaks would very much help the economy in a sensible way instead of trying to create ever-increasing refundable credits that people can take just for existing.

Even with a lease, the economic present value of money is calculated by the leasing company, and a statement of equivalent interest could be provided to the buyer.