Updates
Here are summaries of important legal or procedural changes that affect the latest edition of this product.
If you want to check on the accuracy of any other information in the book, please follow the legal research
instructions in the book or in Nolo's research manual, Legal Research: How to Find and Understand the Law.
What's New in the 3rd Edition of Tax Deductions for Professionals
Overview of What's New
The book is fully updated to cover changes in the tax laws since the last edition, including substantive changes and updated tax numbers and rates.
Who Needs the New Edition?
You Don't Need the New Edition If:
you want general information about the type of tax deductions professionals can take.
You Need the New Edition If:
you want to calculate your deductions using current tax numbers and rates, and the most up-to-date tax information.
Chapters Most Affected
There were updates to tax numbers and rates and other minor changes throughout the book. Some of the chapters most affected were:
Chapter 2: Choice of Business Entity
Chapter 5: Car and Local Travel Expenses
Chapter 9: Deducting Long-Term Assets
Chapter 11: Medical Expenses
Chapter 12: Retirement Deductions
Forms That Have Changed
None
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Increase in IRS Mileage Rate
Effective date:
Jul. 1, 2008
Effective July 1, 2008, the standard mileage rate for the use of a car (including vans, pickups, or panel trucks) is 58.5 cents per mile. The rate for January 1, 2008 through June 30, 2008 was 50.5 cents per mile. For 2007, it was 48.5 cents per mile. The increase for the second half of 2008 was due to recent increases in the price of fuel.
Self-employed people can deduct their business miles driven using the standard mileage rate, but to qualify, you must use this method the first year you use a car in your business. You can't use the standard mileage rate if you have claimed accelerated depreciation deductions in prior years, or have taken a Section 179 deduction for the vehicle.
Injured workers who are receiving workers' compensation benefits from the State of California also use the IRS mileage rate when they request reimbursement for miles driven to and from medical appointments, pharmacies, and the like.
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