Buying a house in the U.S.? The IRS wants to know

That's if you are a Canadian resident.  It is interesting how a weak dollar promotes foreign citizens to consider purchasing real property in the US (can you say "do I have a deal for you?").  This is a great article about the income tax compliance issues for Canadian citizens who believe US real estate is a good investment.  It's not all roses...

http://www.financialpost.com/personal-finance/Buying+house+wants+know/5138905/story.html

The States' Battle for Revenue

The States' battle for sales tax revenue continues.  I wonder if a more productive process to determine who must collect a particular states sales tax could be developed with a little leadership from Washington.

http://www.latimes.com/business/la-fi-amazon-war-20110713,0,2902994.story

IRS Changes in Business Standard Mileage Rate

The IRS has announced a mid-year adjustment to the 2011 optional standard mileage rates. Effective July 1, 2011, the business standard mileage rate increases from 51 cents-per-mile to 55.5 cents-per-mile for the second half of 2011. The medical/moving standard mileage rate also increases by 4.5 cents-per-mile for the second half of 2011 but the charitable standard mileage rate remains unchanged at 14 cents-per-mile. The IRS took the unusual step of adjusting the rates mid-year because of higher gasoline prices.

Businesses generally can deduct the entire cost of operating a vehicle for business purposes. Alternatively, they can use the business standard mileage rate, subject to some exceptions. The deduction is calculated by multiplying the standard mileage rate by the number of business miles traveled. Self-employed individuals also may use the standard rate as can employees whose employers do not reimburse, or only partially reimburse, them for business miles driven.

In late 2010, the IRS set the 2011 business standard mileage rate at 51 cents-per-mile for 2011 and the medical/moving rate at 19 cents-per-mile. The charitable rate is set by Congress and remained at 14 cents-per-mile for 2011. The IRS uses a formula to calculate the rates. The formula takes into account gasoline prices and other costs associated with operating a vehicle.

Since the start of 2011, gasoline prices have risen in most parts of the country. In May 2011, a bipartisan group of lawmakers in Congress asked the IRS to consider a mid-year increase in the mileage rates to help offset higher gasoline prices. The IRS took similar action in 2005 after Hurricane Katrina and in 2008 when gasoline prices also climbed very high.

On June 23, 2011, the IRS announced an increase in the mileage rates for the second half of 2011. The business standard mileage rate is 55.5 cents-per-mile for business miles driven on or after July 1, 2011 and on or before December 31, 2011. The medical/moving rate is 23.5 cents-per-mile for miles driven on or after July 1, 2011 and on or before December 31, 2011. The charitable rate, because it is determined by Congress and not the IRS, is unchanged for the second half of 2011.