The IRS just released 157 pages of new tax regulations related strictly to Obamacare. They only affect your 2013 taxes, but there may be some implications for this year and moving income or expenses forward to your 2012 taxes.
I'll be reviewing those regulations and will write a brief summary in the next week or so but I wanted people to know that there are more changes coming in addition to the so called fiscal cliff tax implications.
Income tax laws don't require maintaining a mileage log for business use of your vehicle. But lack of a mileage log does affect the tax consequences of vehicle reimbursements you receive. Mileage records are necessary to classify reimbursement plan payments as non-taxable income. This Internal Revenue Service rule applies to plans paying you a vehicle allowance as well as an amount per mile.
Employees are required to provide adequate documentation to receive…Read More
The IRS provides taxpayers a choice between a flat rate per mile for transportation expenses and the actual cost of transportation based on the actual annual expenditures. If you choose the flat rate, maximizing those legitimate transportation deductions on your annual tax return are a simple matter of maintaining a complete and accurate mileage log.
Here are some rules to keeping a successful mileage log to prevent potential problems in the future.