Ask Rande 10,000+

Top 646. Jan 2, 2002 9:18 AM

» DennisL - Re: Re: Tax Deduction for Gasoline Sales Taxes

In response to message posted by Rande:

I'm guessing my friends are probably deducting 14 cents/mile for their trips involving the charitable organization that we are members of, which raises this question for me:

Can I deduct 14 cents/mile for my trips to and from the organization's building when I go there to work (unpaid) to help serve food, drinks, etc. at the organization's business meetings and social functions?

Thanks again.

-- posted by DennisL

Top 647. Jan 2, 2002 9:30 AM

» Rande - Re: Re: Re: Tax Deduction for Gasoline Sales Taxes

In response to message posted by DennisL:

Dennis,

Yes. Although you can't impute any deduction for the value of time spent performing volunteer services, etc., you can deduct out-of-pocket expenses directly related to volunteer work for a qualified charitable organization, including travel expenses. The statutory rate of 14 cents per mile can be used in lieu of itemizing travel expenses (although parking fees and tolls can be added to the 14 cent per mile calculation).

-- posted by Rande

Top 648. Jan 2, 2002 10:14 AM

» DennisL - Re: Tax Deduction for Gasoline Sales Taxes

In response to message posted by Rande:

Some follow-up questions:

I made a lot of trips to the place during 2001, but unaware of the 14 cents/mile deduction, I obviously didn't maintain any written documentation of my trips. Is it all right for me to estimate the number of trips I made and claim a reasonable deduction for 2001? Does this sort of deduction raise a red flag for an audit? Does California allow the same deduction? Should I start keeping detailed records of my trips now for 2002 and beyond?

Thanks.

-- posted by DennisL

Top 649. Jan 2, 2002 10:22 AM

» Rande - Re: Re: Tax Deduction for Gasoline Sales Taxes

In response to message posted by DennisL:

Dennis,

You can always claim whatever you like. The trick is being prepared to substantiate your deductions in the event of an examination. smile Of course, even if you drove 1,000 miles you're only looking at a $140 deduction, which means a tax savings of only around $60 or so in the highest federal/CA bracket.

Yes, going forward you should keep a mileage log with dates and descriptions and save any receipts for parking, tolls, etc., and, yes, CA conforms to the federal law.

-- posted by Rande

Top 650. Jan 2, 2002 1:38 PM

» reporter20 - 403B

Hi Rande. Happy new year.

My wife is eligible starting today for a 403B (non matching) and on Aug 1 will be eligible for a pension in which the organization puts in 11% of salary. So, they will contribute 11% of salary for 5 months in 2002.

My question is this: How much of a percentage of salary can she put in the 403B? Also, she turns 50 on 4/17. I guess the combined amount of what they contribute to the pension and what she can contribute to the 403B is a certain percentage of salary. I hope this question is clear enough to answer. Give it your best shot. Thanks, as always for your time and patience.

Rep

-- posted by reporter20

Top 651. Jan 2, 2002 1:46 PM

» Rande - Re: 403B

In response to message posted by reporter20:

reporter,

The organization can set the deferral percentage limitation and matching percentage wherever they want so long as individuals don't defer more than $11,000 of their salary and total contributions including employer match don't exceed $40,000.

-- posted by Rande

Top 652. Jan 3, 2002 7:32 AM

» gary01 - S&P 500 Dividend Return

Happy new year, Rande.

Thank you for all the time you so graciously give to those of us seeking your advice and reasoned guidance.

I have been trying to find the average annual dividend returns of the S&P 500 (or better, the total stock market) for the years 1998, 1999, 2000, and 2001. The data is similar to that developed by Ibbotson & Assoc.

So far, I have had no success. Are you aware of any website that maintains this sort of data?

Thanks,

Gary

-- posted by gary01