Bourgeois Bennett, CPAs & Consultants
111 Veterans Blvd., 17th Floor
Metairie LA 70005
work: 504.831.4949

eBulletin

eBulletin is a complimentary service to our clients and friends to provide individual and business tax information throughout the year via short emails. If you would like to receive our eBulletin, simply email Janice Chaffin at janicec@bb-cpa.com and insert "eBulletin" in the subject line. You will be added to the list. We do not share our lists.

eBulletin 2011-2
August 3, 2011

Reminder – The Sales Tax Holiday Is This Friday and Saturday

Louisiana’s annual sales tax holiday is this coming Friday and Saturday, August 5th and 6th. Your qualified purchase is exempt from the 4% Louisiana sales tax for up to $2,500 of the purchase price. Parish and other local sales taxes are not included in the exemption.

The exemption will apply statewide to all consumer purchases of tangible personal property, other than vehicles subject to license and title and meals furnished for consumption on the premises where purchased, including to-go orders, provided that the property is not for use in a business, trade, or profession.

In addition to the specific exclusions for vehicles and meals, the state sales tax holiday will not apply to purchases of taxable services (such as hotel occupancy; amusement, recreational, and athletic admissions; repairs to tangible personal property; laundry, cleaning, pressing, and dyeing services; vehicle parking; the furnishing of cold storage space; printing services; and telecommunication services) or to leases or rentals of tangible personal property.

You will be eligible for the sales tax exemption if during the two days of the holiday:

  • Your buy and accept delivery of eligible property;

  • You place property on layaway;

  • You acquire property that was previously placed on layaway;

or

  • You place an order for immediate delivery, even if delivery must be delayed, provided that you have not requested delayed shipment.

Purchases during the holiday with “rain checks” issued before the three-day holiday are eligible for exemption, but purchases after the holiday with “rain checks” issued during the holiday are not eligible for exemption.

BB recommends: If you have any questions about this issue, contact your BB representative or call Ted Stacey at (504) 831-4949.

This written advice is not intended or written to be used, and it cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer.

Disclaimer: This eBulletin contains general information and cannot substitute for individual consultation. You should obtain professional advice before making financial business or tax decisions.

eBulletin 2011-1
June 23, 2011

IRS Increases the Standard Mileage Rate

The IRS has announced that it will increase the automobile standard mileage rate for the second half of 2011, effective July 1, 2011.

The new rates are as follows -

  • Business use – 55.5¢ per mile (up from 51¢)
  • Charitable driving – 14¢ per mile (set by law and unchanged)
  • Driving for medical reasons – 23.5¢ per mile (up from 19¢)
  • Moving expenses – 23.5¢ per mile (up from 19¢)

The revised standard mileage rates apply to deductible transportation expenses paid or incurred for business, medical, or moving expense purposes on or after July 1, 2011, and to mileage allowances that are paid both (1) to an employee on or after July 1, 2011, and (2) for transportation expenses paid or incurred by the employee on or after July 1, 2011.

Employers can reimburse their employee's business use of their personal cars by the same 55.5¢ per mile rate without the reimbursement being taxable to the employee, if the employer has an "accountable plan". An accountable plan generally must require the employee to substantiate the business use and, if advance payments are made to the employee, must require any unsubstantiated advances to be repaid within a reasonable period of time.

The standard mileage rate can be used to compute deductible automobile expenses in lieu of computing your actual costs. There are some limitations to the use of the standard mileage rate.

BB recommends: If you have any questions about this issue, contact your BB representative or call Ted Stacey at (504) 831-4949.

This written advice is not intended or written to be used, and it cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer.

Disclaimer: This eBulletin contains general information and cannot substitute for individual consultation. You should obtain professional advice before making financial business or tax decisions.

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2009 • 2008 • 2007 • 2006 • 2005