The IRS has issued the depreciation limits for business vehicles first placed in service in 2007. For passenger cars, the limits are $3,060 for 2007, $4,900 for 2008, $2,850 for 2009, and $1,775 for each year thereafter.
For light trucks and vans first placed in service in 2007, the limits are $3,260 for 2007, $5,200 for 2008, $3,050 for 2009, and $1,875 for each year thereafter.
The IRS says homeschooling parents cannot take the deduction educators are allowed for up to $250 of classroom supplies they purchase with their own money.
The deduction is available only to teachers, instructors, counselors, principals, or aides who work at least 900 hours a school year in a public or private elementary or secondary school.
Beginning this October, the IRS plans to audit about 13,000 individuals for tax year 2006 as part of a research project to update the Service’s audit selection process. Audits will focus on those parts of the individual’s tax return that cannot be verified through third-party information reports sent to the IRS.
If the program is extended for several years, as the IRS hopes, it will also provide information about the tax gap (the difference between taxes owed and taxes actually collected).
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