House of Taxes

There are a slew of changes regarding the IRS code for 2007, some of which benefit realtors. Many of these changes were made by the IRS due to inflation adjustments. A lot of the exemptions were broadened and raised.

One of the areas of interest to realtors is the Standard Mileage Rates, which were increased as of January 1st, 2007. When operating your car for business, the rate per mile deduction has been increased to 48.5 cents. The moving rate deduction has increased to 20 cents per mile, the medical rate deduction also increased to 20 cents per mile, while the charitable services rate remained the same at 14 cents per mile.

The Earned Income Credit amount was also raised, along with the Exemption amounts. Click here to look at some of the tax rate schedules.