Facts and Figures
Timely points of particular interest
Homeowner Tax Breaks—Congress passed legislation late in 2007
granting relief to homeowners in debt. For a three-year period, joint-filers
may exclude from tax up to $2 million of debt forgiveness on a mortgage for
a principal residence. The new law also enables widowed spouses to claim the
full $500,000 exclusion on the sale of a principal residence if the home is
sold within two years of the deceased spouse’s death. Finally, deductions
for mortgage insurance premiums have been extended through 2010.
Gear Up for 2008—The IRS recently announced an increase in the
standard mileage rate for 2008. The new rate is 50.5 cents per business
mile, plus business-related tolls and parking fees (up from 48.5 cents per
business mile in 2007). On the other hand, the standard mileage rate
applicable for medical or moving expense deductions has been reduced from 20
cents per mile to 19 cents per mile. The rate for charitable driving remains
at 14 cents per mile for the 2008 tax year.
Wherewithal
is provided by Somerset for our clients and other interested persons
upon request. Since technical information is presented in generalized
fashion, no final conclusion on these topics should be made without
further review. For additional information on the issues, please
contact
a member of the firm. Somerset provides total financial solutions,
including accounting, assurance, information solutions, litigation &
valuation, tax, wealth management and management consulting services to
entrepreneurs and their businesses. This document is not intended or
written to be used, and cannot be used, for the purpose of avoiding tax
penalties that may be imposed on the taxpayer.
Somerset CPAs,
P.C.
3925 River Crossing Parkway, Third Floor
Indianapolis, Indiana 46240
317.472.2200 • 800.469.7206 • FAX 317.208.1200
www.somersetcpas.com
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