This article is about the first half of 2008 until the change kicks in on July 1, 2008
BREAKING NEWS! CHANGE AS OF JULY 1, 08-Click Here
Change for mileage allowance for 2009 miles driven - Click Here
You do have to keep mileage records for the IRS tax prep and differentiate between
business,
personal,
charity and
moving miles.
You can take a business vehicle tax deduction with receipts for all expenses or mileage deduction.
For the first half of 2008 business miles at $0.505 per mile (50.5 cents per mile)
See details about mileage allowance changes in the 2nd half of the year.
For all of 2008 charity miles are @ $0.14 per mile.
For the first half of 2008 moving and medical miles are @ $0.19 per mile.
See details about mileage allowance changes for the 2nd half of the year.
The charity, medical and moving mileage deductions are not as much of an advantage and for
most of
us it wouldn't as big an issue. So let's focus on business here a bit.
The business miles are often the best deduction and even though the
price
of gas is skyrocketing if you have a business that logs a lot of highway
miles
like I do at 50.5 cents per mile it still should be a better method for
2008. I would suggest keeping track by both methods so that at tax time
you can do the math and decide which is the better. Use a log book to track the odometer readings each day.
Someone
told me how they recreated the mileage for one day when they forgot to log the
difference between personal miles and business. They went to a web site
that offers online maps and driving directions.
There are software programs that are very helpful for tax prep and many
people use them. I like to do all of the preliminary record keeping work and
trust my accountant for the details.
Some people think it's unnecessary to use an accountant because the
electronic filing and tax prep software is so easy to use. I'll have to look into it because it's surely worth the effort to learn about the
ease of use of the software
and decide if you want to
save the cost of the
accountant.
So using
software and e-filing is
another way to save money.
Use this site for more tax tips. http://www.rc123.com/tax_information_links.html
You also have the option of deducting using a percentage method whereby
you have to save all receipts for gas, parking, registration, repairs etc.If you had a catastrophic year repair wise or had to park in a garage
everyday
that could warrant keeping all records and possibly using the
percentage
method.
Medical and moving allows a $0.19 per mile deduction and although I do
have a serious heart problem with 2 artificial valves and need constant
blood tests at my doctors office, it isn't very far. So for me n/a.
There are those who have to travel for dialysis or chemotherapy on a
regular basis and for them it is vital that they save the money using the
deduction.
The charity deduction @ $0.14 could be an issue if you did it on a regular basis but again
you have to do the math. This can be a make it or break it deduction and If you are self-employed and
just starting out in business for yourself you have to think about this right
away so that your records will be
accurate.
The mileage deduction amounts change every year so be sure to look it up before you start every new year just to know where you will stand deduction wise.
Good Luck!
Copyright © Roger Chartier 2008
Go to
The index of the tax articles on this site
TAX INFORMATION PAGE LINKS
for many more tax saving tips pages.
Notes: This is often referred to as the federal mileage rate, and the concern is about federal mileage reimbursement.
Federal mileage allowance is the topic. It is also incorrectly spelled milage .You ask, what is the federal irs mileage rate standard or IRS mileage rate reimbursement?
You do have to keep an irs mileage log.
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