Depreciating Vans and Trucks

If you purchase and place in service certain trucks and vans in 2013, you can depreciate them under section 179 up to a limit of $500,000. They have to be used more than 50% for business. Other conditions are required such as an open cargo area of at least 6 feet long , a loaded gross vehicle weight of at least 6,000 lbs., and seating of more than 9 passengers behind the driver seat. Some qualifying vehicles are Ford F-150s with a 6 ft. bed, Ford F250/F350s super duty, and Ford E-series cargo vans. Any truck or van with a loaded gross vehicle weight over 14,000 lbs. also qualifies. This $500,000 section 179 limit drops to $25,000 in 2014.

2014 IRS Tax Numbers

Every year the IRS updates various amounts for tax returns. The following are some of the more significant changes from 2013:


Business mileage drops to 56 cents a mile from 56.5 cents per mile in 2013.
The estate tax exemption increases from $5,250,000 to $5,340,000 in 2014.
The social security taxable wage limit increases to $117,000 from $113,700.
The HSA contribution for families increases to $6,550.
The Medicare Part B premium starts at $104.90 per month and $0 for Part D.
For higher income seniors, the Medicare Part D premium can be as high as $335.70 a month and $69.30 for Part D.
The standard deduction for married filing joint is $12,400 and the personal exemption is $3,950.

The IRS Fresh Start Initiative

The IRS has streamlined its offer in compromise process where a taxpayer can pay off his unpaid tax liability, penalties and interest for less than the full amount owed through a written agreement with the IRS. The new process called the Fresh Start Initiative requires less financial info and is more flexible in looking at the taxpayer's ability to pay. There is also greater flexibility in looking at allowable living expenses.

Volunteer Work

Can you deduct anything for the value of your time you spend helping charitable organizations? Unfortunately, the answer is no. You can however deduct any out of pocket costs and mileage of 14 cents per mile.