2010 New IRS Tax Laws

2010 New IRS Tax Laws

• The 2010 mileage reimbursement rate for business, medical purposes, moving, and charity is 50 cents, 16.5 cents, 16.5 cents, and 14 cents respectively.

• Home buyer tax credit (up to $8,000.00) has been expanded and extended. Individuals who previously owned a home and lived in it for five out of six years are now eligible for up to $6,500.00 tax credit. The credit is available for contracts signed between January 1, 2009 and April 30^th 2010.

• The educator expense deduction ($250.00) will be eliminated beginning with the 2010 tax year.

• Taxpayers who itemize will no longer have the option to claim state and local sales tax as a deduction beginning with the 2010 tax year (due April 15, 2011).

• Section 179 accelerated depreciation for equipment purchased in 2010 has been reduced from $250,000.00 to $135,000.00.

• There is no estate tax for 2010. This is the best year to “kick the bucket” if you want to avoid estate tax.

 

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