Monday, March 28, 2011

Proposed Vehicle Mileage Tax

As an alternative to raising fuel taxes, one possibility would be imposing taxes on vehicle miles traveled. In order to impose so-called VMT taxes, however, metering devices would have to be installed in vehicles to keep track of the number of miles traveled. They might work similarly to transponder systems such as EZPass, which allow drivers to prepay tolls in 14 states.

Friday, March 11, 2011

IRS Will Audit More Landlords

The Internal Revenue Service announced their intention to audit more income tax returns containing rental properties, especially those reporting minimal income or losses.  The IRS believes that a significant number of landlords are either under-reporting rental income or over-reporting rental expenses - or both.  Targeted will be returns that continuously report losses and/or extraordinary expenses.

Landlords are cautioned to maintain accurate records and receipts, and to know the tax laws dealing with rental property.