HALLIDAY & COMPANY is interested in helping you achieve your individual and business financial goals.  Understanding basic financial and tax concepts will help prevent costly mistakes and allow you to operate as efficiently as possible.  For this reason, we publish  “ACCOUNT-ABILITY” as a resource of helpful information, which we hope, will benefit you personally and/or as a business owner.

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This newsletter offers factual and up-to-date information on the subjects discussed, but should not be regarded as a complete analysis of these subjects.  No party assumes liability for any loss or damage resulting from reliance or use of this material.

HAPPY HOLIDAYS!

 December 2006 Continued

At this Holiday Season, our thoughts turn gratefully to those who have made our progress possible.  Thank you and warmest wishes for the Holiday Season and the New Year.

Year 2007 Standard Mileage Rates

The standard mileage rate is available to both employees and self-employed persons in computing deductions for car expenses.  A taxpayer may use the standard mileage rate per mile as a deduction rather than keeping tract of actual vehicle expenses. Remember, that in addition to any of these mileage allowances, the cost of paring and tolls is deductible as an additional expense

 

Summary of year 2007 standard mileage rates:

 

Business 48.5 cents per mile

Charitable 14 cents per mile

Medical/ moving 20 cents per mile

Kiddie Tax Increases This Year

Remember that an increase in the kiddie tax age to age 18 applies this year.  Until the year a child reaches age 18, any unearned income over $1,700, such as dividends and gains, will be taxed at the parent’s highest marginal tax rate, not the child’s lower tax rate.  Prior to passage of the new law last May, the rule applied only to kids who were under age 14.