Bicycle fringe benefit (Code Sec 1.32(e(t)(D)): Starting in 2009, employees who bicycle to work may exclude from gross income employer reimbursements of up to $20/month to cover the cost of buying, repairing, and storing a bicycle.

Home improvements: Beginning 2009, a tax credit of up to $500 applies for certain home energy improvements (i.e. insulation). The credit had expired at the end of 2007. There are other dollar limits for certain types of home energy improvements. The credit applies only to qualified improvements to a main home; it does not apply to improvements to vacation property.

The standard mileage rate for business will be reduced to 55¢ starting January 1, 2009, and a decrease of 3½¢ a mile from July 1, 2008 rate but it is still an increase of 4½¢ from January 2008. Medical and moving miles are reduced to$.24 a mile a decrease of 3¢. Charitable miles will remain at $.14 a mile. You may still claim the cost of parking and tolls if you use the mileage rate, but you cannot add in the cost of fuel and repairs. You cannot use mileage if you claimed depreciation or expensing on the vehicle.

October 24, 2008 - Orrtax and IntelliTax are sold. Those products will NOT be offered to current customers. Find out here how you can get MRS TAX Software for your practice.