Taxes

What's New in 2009

» Mileage
The business mileage
rate as of Jan. 1, 2009, is 55 cents per mile.

» Expensing
Businesses may expense up to $250,000 of new or used depreciable, tangible personal property using the section 179 deduction. If the business spends more than $800,000 on section 179 property, the amount of the deduction is reduced by $1 for every $1 over $800,000. Check IRS Publication 946, “How to Depreciate Property,” for more details.

» Self-Employment
The self-employment tax rate on net earnings remains the same for 2009. The 15.3% rate is a combination of 12.4% for Social Security and 2.9% for Medicare. The maximum amount of the Social Security part of the tax in 2009 has increased to $106,800 (up from $102,000 in 2008).

» Social Security and Medicare
The employer and employee will each continue to pay 6.2% for the Social Security tax and 1.45% for Medicare. The maximum amount of the Social Security part of the tax in 2009 has increased to $106,800 (up from $102,000 in 2008).