IRS mileage tax deduction 2012

2012 IRS mileage allowance tax deductions

For 2012 business miles driven the allowance is $0.55.5 per mile (fifty-five and a half cents per mile).

This is the same as the second half of the year 2011.
There was a mid-year increase from $.051 per mile starting July 1. 2011

For 2011 charity miles driven are still staying at $0.14 per mile. Same as 2011

For 2012 moving and medical miles driven are up to $0.23 from the 19 cents per mile allowance back in in 2011.

If you have a business that logs a lot of highway miles like I do at 55.5 cents per mile it still should be a better method for 2012.  

If your vehicle is paid for and it's expenses for repair and/or maintenance are low it seems that the mileage deduction works best.

Best keep track by both methods so that when tax time comes you can do the math and decide which is the better.
Keep a log book to track the odometer readings each day.
I was told how mileage was re-created for one day when they forgot to log the
difference between personal miles and business. They went to a website
that offers online maps and driving directions and mapped out the trip.

Recently a man was audited by his state revenue service and concerning his using the mileage deduction they really rode him hard about exactness and carefull daily record keeping.
He was waiting to hear whether a proposed $2,000.00 fine would be levied on him.

You will find 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 that they don't need to use an accountant because the
electronic filing and tax prep software is so easy to use.

It's probably worth the time and effort to learn about the ease of use of the software and decide if you want to save the cost of the accountant.

Using software and e-filing is another way to save money. Many business people have recommended Intuit Quickbooks.

  You also have the option of deducting using the percentage method whereby
you have to save all receipts for parking fees, gas, registration, repairs etc.
If you had a catastrophic year, repair wise, or had to park in a pay garage everyday that might warrant keeping all records and possibly using the  percentage method.

Medical and moving for 2012

allows a $0.23 cent deduction (through June) up from 2011's $0.19 per mile deduction. For some it isn't worth bothering with.

For those people who have to travel for dialysis or chemotherapy on a
regular basis, it is vital that they save the money using the deduction.

The IRS charity mileage deduction

@ $0.14 per mile driven in service of charitable organizations) could be an issue if you did it on a regular basis but again you have to check the numbers.

The above info can be a make it or break it situation.

When it is time to file yoru taxes this can possibly represent the largest deduction that you will take depending on what you have done in that year. So don't take a casual approach to record keeping.

IRS mileage allowances change every year so be sure to come to visit this site before you start every new year just to know where you will stand.

NOTE:

If you use the Depreciation - Basis Reduction Amount method

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 answers questions about federal mileage reimbursement. Federal mileage allowance is the topic. Someone spelled it mileage. You ask, what is the federal irs mileage rate standard or IRS mileage rate reimbursement? Read the above. You do have to keep an irs mileage log.